JLR is raising a £2 billion five-year syndicated loan to refinance debt due next year.
The loan route was chosen as global bond markets remain volatile and costly.
JLR’s FY26 profit fell sharply amid US tariffs, weak China demand and a 2025 cyberattack.
Jaguar Land Rover (JLR), the British luxury car unit of Tata Motors, is raising £2 billion through a five-year syndicated loan from a group of multinational banks to refinance debt due early next year, the Economic Times reported.
The loan is expected to be priced at 155 basis points above the Sterling Overnight Index Average (SONIA), the UK benchmark rate currently trading at 3.73%, implying an effective rate of around 5.28%.
1 May 2026
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Around seven banks are acting as core underwriters — the first such loan arrangement for the company in several years — and the facility is set to be syndicated to a wider group of lenders, likely close to 20 banks in total, by the end of this month.
The core underwriters include Singapore's DBS Bank, Citibank of the United States, UK-based Standard Chartered, HSBC (Hong Kong and Shanghai Banking Corporation) and Japan's Mitsubishi UFJ Financial Group (MUFG), all of which have reportedly already committed funds.
The fee structure will differ between the core underwriters and the broader lending group, with the former receiving higher fees.
Why a Loan, Not a Bond
JLR, which typically raises funds through bond issuances in international markets, opted for a loan this time due to prevailing volatility in global bond markets, which made a bond issue a costlier option, the report said, citing sources.
JLR reported a sharp drop in net profit for FY26 to £14 million, down from £2.5 billion in the previous fiscal year. The decline was attributed to the impact of US tariffs, weakening demand in China and a cyberattack in September 2025 that forced a month-long shutdown of manufacturing facilities in the United Kingdom, Slovakia, Brazil and India, disrupting its supply chain.
Notably, last year, the company had sought emergency funding and secured a £1.5 billion loan guarantee backed by the UK government. JLR returned to profitability in the March quarter after posting a loss in the December quarter.
