Tata Capital Ltd, one of India’s largest diversified non-banking financial companies (NBFCs), has raised $400 million through a 3.5-year Fixed Rate Senior Unsecured Reg S Bond.
The fund raise will diversify the company’s funding sources. It will also strengthen its access to international capital markets.
Issue oversubscribed
The transaction was priced at UST +107 basis points, referenced to the three-year U.S. Treasury.
The fixed coupon is 5.332%. The bond was oversubscribed four times.
Strong investor response
The issue attracted strong participation from investors across Asia and EMEA. These included asset managers, insurance companies, banks and other institutional investors.
Tata Capital conducted investor meetings in Hong Kong, Singapore and London before launching the issue.
The bond was launched with an initial price guidance of UST +140 basis points. Strong demand from high-quality investors enabled the company to tighten pricing by 33 basis points to UST +107 basis points.
Funding strategy
HSBC, MUFG and Standard Chartered Bank acted as Joint Global Coordinators and Joint Bookrunners for the transaction.
Tata Capital Managing Director & Chief Executive Officer Rajiv Sabharwal said, “It is our first issuance following our S&P BBB rating upgrade and successful equity listing. It marks an important step in diversifying our funding mix and extending our access to international capital markets. The transaction strengthens our liability profile and supports our long-term growth strategy.”
The company said it remains the only Indian private sector NBFC to access the U.S. dollar bond market with an investment-grade rating at the time of issuance.
Key highlights
The transaction recorded the highest pricing tightening for a single-tranche investment-grade U.S. dollar bond issue from India in 2026. The spread narrowed by 33 basis points from the initial price guidance.
The bond carries a BBB (Stable) rating from S&P. It has been issued under Tata Capital’s $2 billion Euro Medium Term Note (EMTN) programme.
Company background
Tata Capital is the financial services arm of the Tata Group. It is one of India’s leading diversified NBFCs.
The company offers retail, corporate and infrastructure finance, housing finance, wealth management and investment banking services. It serves customers across multiple business segments.