Tata Motors says don't need UK guarantees for loan

MUMBAI Aug 11 (Reuters) - Tata Motors Ltd (TAMO.BO) expects to tie-up 340 million pounds ($559.6 million) long-term loan for its UK-based Jaguar Land Rover unit without guarantees from the British government, the Indian vehicle maker said on Tuesday.

The loan, sanctioned by the European Investment Bank, will be secured through commercial arrangement, the company said in a statement, although it had been in talks with the UK government.

"With the positive trend in the external environment in financial markets and improvement in general liquidity, these arrangements have been and are expected to be concluded without necessitating guarantees from the UK Government," it said.

A UK government spokesman said earlier on Tuesday the company had secured a 175 million pounds private sector loan for JLR and no longer needs financial support from Britain. [ID:nLB679349]

Tata Motors had bought the premium JLR brands last year for $2.3 billion from Ford Motors (F.N).

The company said it was in discussions with commercial banks for funding facilities, many of which were successfully concluded and the balance would be completed in the coming weeks.

Tata Motors and the British government have been in talks for a rescue package for JLR that also included 450 million pounds from British banks and underwritten by the government.

Shares in Tata Motors, which has a market value of $3.8 billion, closed up 6.8 percent at 428.25 rupees while the main index .BSESN rose 0.4 percent. The stocks have climbed 169 percent this year, outpacing a 56 percent rise in the index. ($1=.6076 Pound) (Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)