Jaguar Land Rover secures $700 million to support rising sales

CBI member, Jaguar Land Rover, has announced that it has secured 5 billion RMBs’ worth of investment from Chinese banks.

The automobile manufacturer has entered into agreements with lenders in China for an unsecured 3-year term loan facility of £556 million, marking its first debt financing in China.

Arthur Yu, Jaguar Land Rover’s vice president and China chief financial officer, said the Chinese banks that would provide Jaguar Land Rover with the three-year revolving loan include Bank of China, ICBC, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank. The loan facility “can help Jaguar Land Rover, China better manage the cash flow amid the coronavirus epidemic”, Yu told reporters at a press conference last Friday.

Jaguar Land Rover, which imports cars and also has a manufacturing partnership in the Chinese eastern city of Changshu, with Wuhu-based Chery Automobile, said its China sales in April were level with the same period last year, and it saw sales growth in May. Sales from China used to account for 25% to 30% of Jaguar Land Rover’s global sales, but over the past two months have made up 50% of the auto manufacturers sales.