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. After the transaction, Iveco will retain its workforce as well as its headquarters in Turin, Italy

The company is acquiring the commercial vehicle business of Iveco, excluding its defence business, through a voluntary tender offer at €14.1 per share, backed by bridge financing commitments from Morgan Stanley and MUFG.