Tata Capital raises $400 mn via maiden dollar-denominated bond issue

India's Tata Capital has raised $400 million through the sale of US dollar-denominated bonds maturing in three-and-a-half years, the company said in a statement late on Tuesday.

 

The non-banking finance company will pay a coupon of 5.3890 per cent on what is its maiden dollar-bond issue. 

Due to healthy investor interest, the deal was launched with an initial price guidance of US Treasury yield plus a spread of 125 basis points, but strong demand lifted the final pricing to Treasury yield plus 92 bps. 

The transaction drew global investors from Asia and EMEA and included asset managers, insurers, banks and others, the company said. 

"The success of the transaction illustrates the confidence of investors in Tata Capital's strong credit profile, backed by its focus on a diversified and granular loan book," said Rajiv Sabharwal, CEO and managing director of Tata Capital. 

"The transaction will further strengthen our liability profile and diversify our funding sources." Last February, Reuters had reported that Tata Capital was exploring overseas fundraising for the first time in the financial year 2024-2025. 

BNP Paribas, HSBC, Standard Chartered Bank and MUFG were the joint global coordinators and bookrunners, while JP Morgan was joint bookrunner.  (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)