JLR to Raise $2 Billion Loan To Refinance Debt Amid Market Volatility: Report

Jaguar Land Rover Automotive Plc (JLR), the British luxury vehicle arm of Tata Motors, is raising $2 billion through a five-year loan from a group of multinational banks as it looks to refinance debt due early next year, according to people familiar with the matter, ETAuto has reported. The loan is expected to be priced at 155 basis points above the UK benchmark Sterling Overnight Index Average (SONIA), sources were quoted as saying. 

With SONIA currently at 3.73 per cent, the borrowing cost is likely to be around 5.28 per cent. The facility is being arranged with a core group of lenders and is set to be syndicated more widely later this month.

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The move comes at a time when JLR’s financial performance has come under pressure. The company reported a sharp decline in net profit for FY26, falling to 14 million from 2.5 billion in the previous year. The downturn was attributed to multiple factors, including the impact of US tariffs, weakening demand in China, and a cyberattack that disrupted production for several weeks.

“About seven banks are the main underwriters to this loan, which is the first by the company after a long time,” said a person aware of the deal, as per the report. 

“JLR is normally more active in the bond market overseas but this year due to the volatilities in the international market a bond issue looks like an expensive proposition which is why a loan was preferred.”

Among the key underwriters are DBS Bank, Citibank, Standard Chartered, HSBC, and Mitsubishi UFJ Financial Group (MUFG). These institutions have already committed capital towards the transaction, although the full list of participating lenders could not be confirmed. Spokespersons for the banks declined to comment on the development.

The slowdown in China, one of JLR’s key markets, along with the operational disruption following the cyber incident in September, weighed on both output and profitability over the course of the year. However, the carmaker managed to recover in the March quarter, returning to profit after reporting a loss in the preceding December quarter.

“This loan is already being syndicated, with more global banks likely to join later this month,” said another person familiar with the discussions. A spokesperson for JLR declined to comment.

As per its latest annual report, JLR’s total outstanding debt stood at 5.4 billion at the end of FY26. This included 1.8 billion in unsecured bonds, 2.9 billion in unsecured loans, and 38 million categorised as other debt. The refinancing exercise is aimed at managing upcoming maturities while navigating a challenging global financing environment.