Tata Motors markets €3.875 billion loan for Iveco acquisition

Core Insights - Tata Motors Ltd is syndicating a €3.875 billion ($4.5 billion) bridge loan to fund its acquisition of Iveco Group's commercial vehicle business, marking one of the largest deals in Asia this year [1][3] - The acquisition aims to enhance Tata Motors' strategic presence in Europe's commercial vehicle market, nearly two decades after its purchase of Jaguar Land Rover in 2008 [3] Loan Details - The 12-month borrowing facility includes a letter of support from Tata Sons Pvt, with a blended interest margin of 102.5 basis points over the benchmark Euribor [2] - Underwriters for the loan include Morgan Stanley, Morgan Stanley Senior Funding Inc., and Mitsubishi UFJ Financial Group Inc. [2] Market Context - M&A loans in the Asia Pacific region, excluding Japan, have surged 70% to $31.3 billion in 2025 compared to the same period last year [4] - Other notable deals include JD.com Inc.'s potential €2.2 billion euro loan for acquiring Ceconomy and Abu Dhabi National Oil Co.'s plans for over $10 billion in debt financing for its takeover of Santos Ltd [5] Acquisition Details - The acquisition of Iveco is valued at approximately €3.8 billion, part of a larger plan involving the sale of its defense unit to Leonardo SpA, totaling about €5.5 billion [6] - The bridge loan is expected to be refinanced with a mix of equity and long-term debt within 12 to 18 months, with the takeover anticipated to be completed by April 2026, pending regulatory approvals [6]