Land Rover has received another key vote of confidence with the granting of a £75 million three-year finance agreement for its parts division.
Burdale Financial Limited, a member of Bank of Ireland Group, today announced the completion of a financing facility of up to £75 million for the Solihull firm.
The package consists of a three-year committed facility to finance Land Rover’s Parts and Accessories’ inventories and receivables in the United Kingdom and the United States.
It is estimated that around two-thirds of Land Rovers ever manufactured are still in service and the timely availability of genuine Land Rover parts globally is seen as a key asset. Steven Chait, Head of New Business at Burdale, said: “We are pleased to provide Land Rover with a financing solution that will enable the continued development of its Parts businesses.
“The flexibility of Asset-Based Lending suits this particular transaction.”
Ken Gregor, Chief Finance Officer of Jaguar Land Rover, said: “This facility is an important element of our working capital financing arrangements.”
The granting of the new facility by Burdale will be seen by the motor industry as another vote of faith from the commercial lending sector in the Solihull-based 4 by 4 specialist.
In April JLR was granted a £340 million loan facility by the European Investment Bank but parent group Tata is still locked in talks with the Government over an underwriting of the finance.