Tata Capital, a leading non-bank financial company (NBFC) under the esteemed Tata Group umbrella, is venturing into uncharted territory with its inaugural overseas fundraising initiative. Eyeing a substantial sum of approximately $750 million through offshore bonds or loans in the upcoming fiscal year starting in April, the company is strategically diversifying its liability base by tapping into international capital markets.

This bold move comes amidst a shifting landscape where Indian corporates are increasingly seeking opportunities beyond domestic borders to secure financing. Fueled by favorable market conditions and evolving investor interest, Tata Capital's decision underscores a strategic shift towards accessing a broader spectrum of funding sources.

Rakesh Bhatia, the Chief Financial Officer of Tata Capital, emphasized the company's proactive stance in exploring overseas borrowing avenues, particularly dollar-denominated bonds, citing growing interest from global investors in Indian corporate debt. This strategic alignment not only supports Tata Capital's growth aspirations but also mirrors a broader trend within India's financial sector, where companies are leveraging global capital markets to fuel expansion initiatives.

Despite the challenges posed by recent fluctuations in global interest rates, exemplified by Federal Reserve rate hikes, the resurgence of fundraising activities among Indian entities signals resilience and adaptability within the market. Recent successes, such as State Bank of India, HDFC Bank, and Shriram Housing Finance collectively raising $2.1 billion via dollar bonds in early 2024, underscore renewed investor confidence in Indian corporates.

Tata Capital's decision to explore overseas markets is further bolstered by its recent credit ratings from S&P Global Ratings and Fitch Ratings, securing a BBB- issuer rating. With a substantial loan book exceeding 1.5 trillion rupees ($18.1 billion), the company sets ambitious targets for growth, projecting over a 25% increase in both loan book size and borrowing requirements for the upcoming fiscal year.

Despite regulatory challenges, including stringent capital adequacy norms and liquidity constraints, Tata Capital remains resolute in its pursuit of growth and financial stability. As liquidity conditions evolve, the company demonstrates agility in navigating the dynamic bond market landscape, optimizing asset-liability management strategies to mitigate risks and seize emerging opportunities.

As Tata Capital embarks on its maiden overseas fundraising journey, the initiative underscores not only the company's strategic vision but also its confidence in the resilience of Indian corporates amidst a changing global economic landscape. With unwavering determination and robust fundamentals, Tata Capital is poised to carve a significant presence on the international financial stage, solidifying its position as a key player in the global financial ecosystem.