Tata Capital, the financial services branch of Tata Group, is preparing to raise $500 million through an international dollar-denominated bond. With a BBB- credit rating anticipated from S&P Global Ratings, the bond issuance represents a key step in Tata Capital’s strategy to expand and diversify its funding sources, particularly through overseas markets.
Reaching Out to Global Investors
In an effort to attract a broad international investor base, Tata Capital is organizing meetings across major financial hubs in Singapore, Hong Kong, and London scheduled for mid-November. Top leaders, including CEO Rajiv Sabharwal, CFO Rakesh Bhatia, and Treasury Head Kiran Joshi, will be actively engaging with potential investors during this roadshow, underlining Tata Capital's commitment to transparency and strategic growth. Major financial institutions, such as Standard Chartered, HSBC, and BNP Paribas, have been enlisted to facilitate these investor interactions.
Shift Towards Dollar Bonds in Tight Domestic Credit Conditions
Non-Banking Financial Companies (NBFCs) in India, like Tata Capital, are increasingly tapping into dollar-denominated bonds amid constrained domestic credit availability. Tata Capital’s planned issuance follows recent successful international bond offerings by peers. For instance, Piramal Finance secured $150 million through a heavily subscribed bond issuance at a 7.078% yield, while Muthoot Finance raised an additional $100 million by expanding its 7.125% bond due in 2028.
Tata Capital’s Diverse Funding Profile
As of March 31, 2024, Tata Capital’s funding is distributed across a range of instruments, including 39% in Non-Convertible Debentures (NCDs), 42% in term loans, and 7% in external commercial borrowings. This upcoming bond issuance aims to broaden this profile further, enhancing Tata Capital’s flexibility and resilience in financing its ongoing growth.
Tata Capital, the financial services branch of Tata Group, is preparing to raise $500 million through an international dollar-denominated bond. With a BBB- credit rating anticipated from S&P Global Ratings, the bond issuance represents a key step in Tata Capital’s strategy to expand and diversify its funding sources, particularly through overseas markets.
Reaching Out to Global Investors
In an effort to attract a broad international investor base, Tata Capital is organizing meetings across major financial hubs in Singapore, Hong Kong, and London scheduled for mid-November. Top leaders, including CEO Rajiv Sabharwal, CFO Rakesh Bhatia, and Treasury Head Kiran Joshi, will be actively engaging with potential investors during this roadshow, underlining Tata Capital's commitment to transparency and strategic growth. Major financial institutions, such as Standard Chartered, HSBC, and BNP Paribas, have been enlisted to facilitate these investor interactions.
Shift Towards Dollar Bonds in Tight Domestic Credit Conditions
Non-Banking Financial Companies (NBFCs) in India, like Tata Capital, are increasingly tapping into dollar-denominated bonds amid constrained domestic credit availability. Tata Capital’s planned issuance follows recent successful international bond offerings by peers. For instance, Piramal Finance secured $150 million through a heavily subscribed bond issuance at a 7.078% yield, while Muthoot Finance raised an additional $100 million by expanding its 7.125% bond due in 2028.
Tata Capital’s Diverse Funding Profile
As of March 31, 2024, Tata Capital’s funding is distributed across a range of instruments, including 39% in Non-Convertible Debentures (NCDs), 42% in term loans, and 7% in external commercial borrowings. This upcoming bond issuance aims to broaden this profile further, enhancing Tata Capital’s flexibility and resilience in financing its ongoing growth.
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