Tata Capital raises $400 mn from international bond markets
ADVERTISEMENT
Tata Capital Ltd, Tata Group’s NBFC (Non-Banking Finance Company) arm, has announced raising $400 million through its maiden issuance from international bond markets, maturing in 3.5 years for investors in Asia and Europe. The company says it will pay an interest of 5.38% on the dollar-denominated bonds. Tata Capital engaged with global investors in Hong Kong, Singapore and London.
“Tata Capital Limited, has successfully raised USD 400 million Fixed Rate Senior Unsecured Reg S Bond for a 3.5-year tenor at an interest rate of 5.389%,” the company states. Reg S bonds are bonds that are not required to be registered with the US Securities and Exchange Commission (SEC).
Driven by strong investor interest, the deal was launched with an initial price guidance of US Treasury plus 125 bps (basis points). “Following a strong book building, supported by high quality investors, the Company was able to tighten pricing by 33bps to UST + 92 bps.”
July 2025
In the world’s youngest nation—where over 65% of the population is under 35—India’s future is already being shaped by those bold enough to lead it. From boardrooms to breakout ideas, a new generation of business leaders is rewriting the rules. This year's Fortune India’s 40 Under 40 celebrates these changemakers—icons in the making like Akash Ambani, Kaviya Kalanithi Maran, Shashwat Goenka, Parth Jindal, Aman Mehta, and Devansh Jain—who are not just carrying forward legacies but boldly reimagining them for a new era. Alongside them are first-generation disruptors like Sagar Daryani, scaling Wow! Momo with a vision to take ₹100 momos to 5,000 cities, and Palak Shah, turning the Banarasi weave into a global fashion story with Ekaya Banaras. These are the entrepreneurs turning ambition into scale. And even beyond traditional industry, the entrepreneurial wave is pulling in creative forces—Ranveer Singh, for instance, is shaking up wellness and nutrition with Bold Care and SuperYou, proving that passion, backed by purpose, is the new blueprint for building brands.
Buoyed by a strong response from investors, the company notes that the final order book oversubscribed above 4 times. The deal attracted global investors from Asia and EMEA (Europe, the Middle East and Africa), including asset managers, insurance companies, banks and other entities.
Transaction milestones: It was the first Investment Grade rated issuance by a Tata Group company and the first by an Indian private-sector NBFC. Additionally, it achieved the tightest spread over US Treasuries for a 3/3.5-year US denominated, public, fixed-rate bond issuance by a BBB-rated issuer from South and South East Asia.
BBB-rated issuers are classified as investment-grade, indicating their stability.
Noting the confidence of investors, Rajiv Sabharwal, managing director and CEO of Tata Capital said, “The success of the transaction illustrates the confidence of investors in Tata Capital's strong credit profile, backed by its focus on a diversified and granular loan book. The transaction will further strengthen our liability profile and diversify our funding sources.”
In February last year, Tata Capital was reportedly exploring its first global fundraising for FY 2024-25.
BNP Paribas, HSBC, Standard Chartered Bank and MUFG served as the joining global coordinators and bookrunners, with JP Morgan acting as a joint bookrunner.
Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.