Tata Capital eyes $300 million overseas bond issue

Mumbai: Tata Capital, the non-banking finance company of the Tata Group, is marketing its second dollar bond issue to raise at least $300 million from investors abroad.

The issue will likely be a Regulation (S) transaction open to investors across the world except the US, with a tenure of three-and-a-half years. Depending on market condition, the company may price the bond and complete the transaction as early as this week, these people said.

Standard Chartered, HSBC and MUFG are the bankers to the issue.


Tata Capital did not reply to an email seeking comment. Spokespersons for Standard Chartered, HSBC and MUFG declined to comment.

"Markets are pretty stable. Weakening of oil prices and a calmer geopolitical scenario have also helped. More importantly, the latest issues priced out of India are trading at a six- to eight-basis-point lower yield which indicates positive investor sentiment," said a person aware of the transactions.

One basis point is 0.01 percentage point.

Brent crude has fallen about 43% from its April peak of $126 per barrel to about $72 per barrel, mainly as tanker traffic gradually attained normalcy in the key Strait of Hormuz transit point after a ceasefire agreement between the US and Iran.

The company has so far raised funds only once-in January 2025-from the international market. It had then raised $400 million by selling dollar bonds maturing in three-and-a-half years to investors in Asia and Europe at a price of 92 basis points above the three-year US treasury.

"Tata Capital being an NBFC, money is raw material for them. They will use it for on-lending purposes. This is the company's first issue since January 2025 as markets were not very conducive for most of 2025. But now things are better," said a second person aware of the details.

In February, Fitch Ratings affirmed Tata Capital's long-term foreign- and local-currency ratings at 'BBB-', in line with India's sovereign rating, underpinned by expectation that parent Tata Sons would provide extraordinary support to thesubsidiary in times of need.