Two Tata Group firms plan India bond issues to raise ₹2,000 cr, bankers say

Tata Power Renewable Energy, a unit of Tata Power, is expected to raise about ₹1,000 crore via 10-year bonds, while Tata Communications may raise a similar amount through three-year notes

Two firms of Indian conglomerate Tata Group are planning to raise around ₹2,000 crore ($231.5 million) through the sale of bonds over the next few days, three bankers said this week.

Tata Power Renewable Energy, a subsidiary of Tata Power, is likely to raise around ₹1,000 crore through the sale of 10-year bonds, while Tata Communications could raise a similar amount through three-year notes, the bankers said.

The bankers requested anonymity as they are not authorised to speak to media.

The companies did not respond to a Reuters email seeking comment.

 

"Mutual funds would be buying the Tata Communications issue in most cases, while insurers are expected to line up for the renewable energy company issue," one of the bankers said.

Tata Communications would be tapping the corporate debt market after a gap of nearly two years and is in talks with foreign banks to manage the issue. Its notes are rated AAA by CARE Ratings.

In August 2023, the company raised ₹1,750 crore through three-year bonds at an annual coupon of 7.75 per cent.

The pricing for the planned issue should be around 100 basis points cheaper, two of three bankers said.

Meanwhile, Tata Power Renewable would be tapping the market for the second time this financial year. It raised 10 billion rupees through 15-year bonds at a coupon of 7.55 per cent in April.

Tata Power Renewable's notes are rated AA+ by rating agencies. The firm has 53 billion rupees worth of bonds outstanding.