Tata Capital Ltd raises USD 400 Million through Second Issuance from International Bond Markets

Tata Capital Limited, one of India's largest diversified NBFCs, has successfully raised USD 400 million through a Fixed Rate Senior Unsecured Reg S Bond with a 3.5-year tenor. The transaction was priced at UST + 107 bps (referenced to the 3-year U.S. Treasury). The fixed coupon / interest rate is 5.332%. The bond received strong demand from investors, with the final order book oversubscribed by 4 times. The transaction witnessed broad participation from investors in Asia and EMEA, including asset managers, insurance companies, banks and other institutional investors.

The Company engaged with global fixed income investors across Hong Kong, Singapore and London. The transaction was launched with an initial price guidance of UST + 140 bps. Following strong bookbuilding supported by high-quality investors, the Company was able to tighten pricing by 33 bps to UST + 107 bps.

HSBC, MUFG and Standard Chartered Bank acted as Joint Global Coordinators and Joint Bookrunners for the transaction.

Commenting on the successful issuance, Rajiv Sabharwal, Managing Director and Chief Executive Officer, Tata Capital Limited, said: "We're grateful to global investors for the strong response to our second USD bond issuance. It is also our first issuance following our S&P BBB rating upgrade and successful equity listing, and an important step in further diversifying our funding mix and extending our access to international capital markets. It strengthens our liability profile and supports our long-term growth strategy."

Key Transaction Highlights

- Tata Capital remains the only Indian private sector NBFC to have accessed the USD bond market with an Investment Grade rating at the time of issuance

- Highest tightening achieved for a single-tranche Investment Grade USD bond issuance from India in 2026, tightening by 33 bps from IPTs (UST + 140 bps) to final pricing (UST + 107 bps)

- USD 400 million Fixed Rate Senior Unsecured Reg S issuance

- International Issuance ratings: BBB (S&P, Stable)

- Issued under the Company's USD 2.0 billion EMTN programme, supporting diversification of funding sources.

Shares of Tata Capital Limited was last trading in BSE at Rs. 357.50 as compared to the previous close of Rs. 355.80. The total number of shares traded during the day was 51301 in over 1394 trades.

The stock hit an intraday high of Rs. 360.90 and intraday low of 355.80. The net turnover during the day was Rs. 18381115.00.

Source : Equity Bulls

Keywords

INE976I01016 TataCapital NBFC FundRaising