Tata Capital plans to raise $500-million debt overseas

Mumbai: Tata Capital, the financial services arm of the Tata Group, is looking to raise $500 million through a dollar-denominated bond, signalling a major initiative to secure international funding for expansion. Expected to carry a BBB- rating from S&P, the bond targets a global investor base as Tata Capital advances its growth strategy.

Investor meetings are scheduled for mid-November across Singapore, Hong Kong, and London. Standard Chartered, HSBC and BNP Paribas are arranging investor calls, said a source.

Top Tata Capital executives, including CEO Rajiv Sabharwal, CFO Rakesh Bhatia, and treasury head Kiran Joshi, will be present in the roadshow.


A spokesperson of Tata Capital did not immediately respond to requests for comment. Standard Chartered Bank, BNP Paribas and HSBC could not be reached immediately for comment.

Amid tight domestic credit, NBFCs are increasingly turning to dollar bonds to diversify funding.

Piramal Finance recently raised $150 million in an oversubscribed bond issuance with a 7.078% yield, expanding its borrowing profile. Similarly, Muthoot Finance raised an additional $100 million in July by tapping its 7.125% bond due in 2028.

Tata Capital has a wide funding base from multiple lenders, with a borrowing profile, including NCDs at 39%, term loans at 42%, and external commercial borrowings at 7%, among others, as of March 31, 2024.