Auto major Tata Motors on Monday said it is in discussion with its lenders to refinance the remaining portion of the $3 billion bridge loan it had taken to fund British marquee Jaguar and Land

Rover’s acquisition.

The company said it will take four to six weeks to finalise an arrangement.

“Tata Motors is in discussions with banks on re-financing the balance of $2 billion, due in end May,” firm’s spokesperson said.

Earlier last year, the company had taken a bridge loan of $3 billion to finance the $2.3 billion acquisition of JLR from Ford, of which $1 billion have already been repayed, the official said.

The $1 billion of the loan was repaid from the proceeds of a rights issue and stake sales in group firms Tata Steel and Tata Teleservices to other Tata companies.

The Tata Motors official declined to give further details, saying announcement regarding refinance would be made at an “appropriate time”.

The company has been struggling to raise long-term funds to replace the bridge loan.

In July 2008, it had got board approval to raise up to Rs 7,200 crore through separate rights issues. Subsequently, it came up with two separate issues to raise Rs 4,147 crore, which met with cold response from investors and the promoters had to subscribe and increase their stake to 42 per cent from earlier 33 per cent.

The company also had plans for an overseas equity issue, but it has been deferred because of the market conditions

Tata Motors then borrowed from public, first time since 1995, which it termed as an ongoing requirement, in December, 2008, offering up to 11

per cent annual interest for a period of up to three years.