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Home arrow News arrow Automotive arrow Fiat India completes financial closure for projects at Ranjangaon plant
Fiat India completes financial closure for projects at Ranjangaon plant Print E-mail
Written by Anand   
Wednesday, 26 August 2009
Fiat India closes syndication for INR 25 billion credit lines.

Mumbai: Fiat India Automobiles Limited (FIAL), a 50:50 Joint Venture between Tata Motors Limited and Fiat Group Automobiles SpA has finalised three syndicated secured credit facility agreements with a consortium of Indian and International banks for INR 25 billion, marking the completion of financial closure for projects at their plant.

The funds would be utilised to execute projects involving manufacturing Powertrains, Fiat & Tata branded cars at FIAL's Ranjangaon plant near Pune.

The facility at Ranjangaon is capable of producing 200,000 cars and 300,000 engines, besides 3,000,000 parts & accessories. Apart from Fiat cars, the facility will also produce Tata passenger and next generation cars with investment exceeding € 650 Million ( 45.29 billion Indian rupees).

Fiat's Palio Stile 1.1, 1.6 models, Linea, Grande Punto are produced at the facility in addition to 1.3 litre Multijet diesel engines and 1.2 & 1.4 litre Fire gasoline engine. The plant provides direct and indirect employment to more than 4,000 people.

The Syndicated Credit Facilities include:

- An ECB Credit Facility, supported an insurance policy issued by SACE (the Italian export credit agency), for an amount of EURO 130 million, with a tenor of seven years, intended for capital expenditures purposes of the company

- An INR Term Credit Facility for an amount of INR 10 billions with a tenor of 6 years, intended for capital expenditures purposes of the company

- An INR Short Term Revolving Credit Facility for an amount of INR 6 billions, with a tenor of 364 days, intended for working capital purposes of the company

Citibank N.A. acting through its Mumbai, London and Milan offices arranged all the Syndicated Credit Facilities.

The participating banks are Calyon, Citibank, Deutsche Bank and Natixis under the ECB Credit Facility; State Bank of India, IDBI Bank, Punjab National Bank and Union Bank of India under the INR Term Credit Facility and State Bank of India, IDBI Bank, Punjab National Bank, Union Bank of India and Citibank under the INR Short Term Revolving Credit Facility. 

 
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