Tata Capital to raise up to $2 billion from overseas market

Tata Capital Plans to Raise $2 Billion in Global Debt Market.

Expert Analysis:

• Tata Capital's Global Debt Market Move: After merging with Tata Motors' NBFC subsidiary, Tata Capital has become the 12th largest non-bank player by AUM and is raising $2 billion through its medium-term notes (MTN) program.

• Credit Rating and S&P Details: S&P has assigned a BBB- rating to the MTN issue, equalizing ratings on senior secured and unsecured notes with the issuer's long-term credit rating due to prudential regulation.

• Senior Unsecured Notes: Senior unsecured notes will be direct, unconditional, and unsubordinated, ranking equally with other senior unsecured obligations.

• Funding Mix (March 2024): Tata Capital had a wide funding base from multiple lenders, including NCDs (39%), term loans (42%), and ECBs (7%) from Tata Capital’s diversified funding base.

• Financial Performance (FY24): The company reported ₹13,309 crore in revenue and ₹2,492 crore in net profit for FY24.