India’s Tata Capital has successfully raised $400 million through its first-ever US dollar-denominated bond issuance, with a maturity of three and a half years, the company announced in a statement on Tuesday.
The non-banking financial company (NBFC) will offer a coupon rate of 5.389% for this inaugural dollar bond.
Strong investor interest allowed the transaction to launch with an initial price guidance of a US Treasury yield plus 125 basis points. However, robust demand led to final pricing at a spread of 192 basis points over the Treasury yield.
This move marks the tightest spread over US Treasuries ever secured for a 3 to 3.5-year USD-denominated public fixed-rate bond issuance by a BBB-rated issuer from South or Southeast Asia.
The company added that the bond issue attracted a diverse range of global investors from Asia, Europe, the Middle East, and Africa (EMEA), including asset managers, insurers, banks, and other institutions.
Commenting on the bond issuance, Rajiv Sabharwal, managing director and chief executive officer at Tata Capital, said, “We would like to thank global fixed-income investors for the overwhelming support we received for our debut USD bond issuance. The success of the transaction illustrates investors’ confidence 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.”
“The transaction will further strengthen our liability profile and diversify our funding sources.” Last February, Reuters reported that Tata Capital was exploring overseas fundraising for the first time in the financial year 2024-2025.
BNP Paribas, HSBC, Standard Chartered Bank, and MUFG served as joint global coordinators and bookrunners for the transaction, with JP Morgan acting as a joint bookrunner.
