11 October 2019 - Article
International law firm Withers LLP has acted for State Bank of India, Bank of Baroda and Bank of India on the £360 million guarantee facilities for the European Investment Bank’s (EIB) loan to Jaguar Land Rover.
The EIB loan of £340 million is the final stage in the funding plan drawn up for Jaguar Land Rover. It is an eight year amortizing loan granted under the European clean transport facility in order to finance the development of micro and full hybrid drive trains, and research into energy efficient car bodies to lower CO2 emissions. The guarantees provided by the Indian banks were the primary security for this loan and the transaction was also counter-guaranteed by a group of banks led by Credit Suisse and including Standard Chartered, Deutsche Bank and JP Morgan.
A team led by partner David Dannreuther and senior associate Christopher Winn at Withers assisted the Indian banks throughout the planning and execution of the transaction. Withers also advised State Bank of India in 2009 in relation to its other loan facility of £175 million to Jaguar Land Rover and will continue to advise the bank on its facilities and security arrangements with Jaguar.
Commenting on the transaction, David Dannreuther said:
_“We are delighted to have advised the consortium of Indian banks on this deal. The loan will help the development of a greener transport system for the future as well as contributing to the turnaround in Jaguar Land Rover’s fortunes in extremely challenging market conditions. We are excited to be part of that process and look forward to continuing our work with the Indian banks on this.”