Tata Motors plans to raise about 1 billion euros ($1.14 billion) of equity to repay the loan funding its $4.5 billion offer to buy Iveco's trucks and bus business, the Indian automaker's chief financial officer said on Thursday.

Tata Motors is set to acquire Iveco Group in a €3.8 billion deal, creating a global commercial vehicle powerhouse with production capabilities of over 540,000 vehicles annually.

India’s Tata Motors has announced a €3.6bn acquisition of the vehicles arm of Italian car and equipment manufacturer Iveco.