Tata Capital raises $400 million in dollar bond sale after strong demand

India's Tata Capital raised $400 million through the sale of U.S. dollar-denominated bonds with a maturity of three years and six months, at a coupon sharply below initial price guidance, the company said in a release on Wednesday.

The non-banking financial company issued ‌the notes ⁠at a spread ⁠of 107 basis points (bps) above U.S. Treasuries, 33 bps tighter than the initial guidance of 140 bps.

Tata Capital said the transaction achieved the largest pricing tightening for a single-tranche investment-grade U.S. dollar bond issuance from India in 2026.


HSBC, MUFG and Standard Chartered Bank acted as joint global coordinators and joint bookrunners for the deal. The coupon works out ⁠to 5.3320%.

CreditSights ‌had expected the coupon to be priced at a spread of 115 bps above U.S. Treasuries.

The notes are rated "BBB" ⁠by S&P, in line with the issuer's own ratings.

"It is our first issuance following our S&P 'BBB' rating upgrade and successful equity listing, and an important step in further diversifying our funding mix and extending our access to international capital markets. It strengthens our liability profile and supports our long-term growth strategy," Tata Capital Managing Director and Chief Executive Officer Rajiv Sabharwal said.

The proceeds from the ‌issue will be used for onward lending and other activities in accordance with External Commercial Borrowing guidelines.

This would be the second dollar debt issue by ⁠the company, which is part of the Tata Group conglomerate.

In January 2025, Tata Capital raised $400 million through its debut dollar debt issue with a similar maturity and a coupon of 5.3890%. The paper was sold at a spread of 92 bps over Treasury.

Over the last month, non-bank lender IIFL Finance raised $300 million through a 4-year social bond, while non-bank lender Capri Global has also initiated its plans for a dollar debt sale.