Tata Capital Raises $400M via First USD Bond Issue

Tata Capital Debuts with USD 400M Bond Issue.

Expert Analysis:

• Successful Fundraising: Tata Capital Limited has raised USD 400 million through its first-ever USD Fixed Rate Senior Unsecured Reg S Bond, with a 3.5-year tenor and a 5.389% interest rate.

• Pricing Achievement: The initial price guidance of UST + 125 bps was tightened to UST + 92 bps, reflecting strong investor demand.

• Global Investor Interest: The bond was oversubscribed over 4 times, with participation from Asia and EMEA investors, including asset managers, banks, and insurers.

• Notable Achievements:

  • First Investment Grade-rated issuance by a Tata Group company and a private sector NBFC from India.

  • The tightest spread over US Treasuries was achieved for a 3/3.5-year USD-denominated, public, fixed-rate bond by a South and Southeast Asian BBB-issuer.

• Key Participants: BNP Paribas, HSBC, Standard Chartered Bank, and MUFG served as Joint Global Coordinators and Joint Bookrunners, with J.P. Morgan as Joint Bookrunner.

• Leadership Perspective: Rajiv Sabharwal, CEO of Tata Capital, highlighted strong investor confidence in the company’s credit profile and its strategic focus on diversification and strengthening liability management through this successful USD bond issuance.