Morgan Stanley, MUFG to syndicate Tata Motors' Iveco acquisition loan

Both global and local banks are considering joining the facility and the deal is expected to be completed by April 2026, pending regulatory approvals

By Saikat Das

 

Banks underwriting a bridge loan to finance Tata Motors Ltd.’s acquisition of Iveco Group’s commercial vehicle business are planning to syndicate the facility, according to people familiar with the matter.  

The banks are in talks with a group of large lenders about selling down the parts of the debt through the process of syndication, the people said, who asked not to be identified because the discussions are private. The foreign currency loan has a one-year tenor and priced about 100 basis points over a global benchmark, they said. 

 

The bridge loan, which was underwritten by Morgan Stanley and Mitsubishi UFJ Financial Group Inc., will later be refinanced with a mix of equity and long-term debt, Tata Motors Chief Financial Officer P. B. Balaji said at a press briefing on Thursday. Ultimately, about €1 billion ($1.1 billion) of the €3.8 billion buyout will be financed through equity and the rest with long-term debt, he said.

 

Both global and local banks are considering joining the facility, the people said, adding that the deal is expected to be completed by April 2026, pending regulatory approvals.

 

Representatives for Tata Motors and MUFG declined to comment. Morgan Stanley did not immediately respond to requests for comment.