JLR Raises £2 Billion Loan To Refinance Debt After FY26 Profit Falls To £14 Million

Jaguar Land Rover (JLR), the British luxury vehicle arm of Tata Motors, is raising £2 billion through a five-year syndicated loan to refinance debt due early next year, according to a report by The Economic Times.

The loan is expected to be priced at 155 basis points above SONIA, the UK's benchmark interest rate. With SONIA currently at 3.73%, the effective borrowing cost is estimated at around 5.28%.

The financing marks one of JLR's largest bank-led fundraising exercises in recent years.

Global Banks Back the Funding Plan

Around seven international banks are acting as core underwriters for the loan, which is expected to be syndicated to a wider group of nearly 20 lenders by the end of this month.

The lead lenders reportedly include DBS Bank, Citibank, Standard Chartered, HSBC and Mitsubishi UFJ Financial Group.

These banks have already committed funds for the transaction. The fee structure will vary, with core underwriters receiving higher fees than participating lenders in the broader syndication.

Traditionally, JLR has relied on bond issuances to raise capital. However, the company reportedly opted for a syndicated loan due to volatility in global bond markets, which made bond financing more expensive.

Profit Slumps Amid Tariffs, China Weakness and Cyberattack

The fundraising comes after a difficult financial year for JLR.

The company reported a net profit of £14 million in FY26, a sharp decline from £2.5 billion in FY25.

According to the report, profitability was impacted by higher US tariffs, weaker demand in China and a cyberattack in September 2025 that disrupted operations.

The cyber incident forced a month-long shutdown of manufacturing facilities in the United Kingdom, Slovakia, Brazil and India, affecting production and supply chains.

Despite the challenges, JLR returned to profitability in the March quarter after posting a loss in the December quarter.

Last year, the automaker had also secured a £1.5 billion loan guarantee backed by the UK government as part of emergency funding measures.

The new £2 billion facility is expected to strengthen JLR's balance sheet and help manage upcoming debt obligations.