Tata Capital Raises USD 400 Million in US Bond Issue

Mumbai, Jul 15 (PTI) Non-bank lender Tata Capital on Wednesday announced a USD 400 million fundraise from the international bond markets.

The Tata group's financial services arm raised the money by issuing a Fixed Rate Senior Unsecured Reg S Bond with a 3.5-year tenor, a statement said.

Its managing director and chief executive, Rajiv Sabharwal, said the fundraise will support the company's liability profile and also its long-term growth strategy.

The transaction was priced at 1.07 per cent over 3-year US Treasury bonds, and the fixed coupon or interest rate is 5.332 per cent.


Investors in Asia and Europe, Middle East and Africa (EMEA), including asset managers, insurance companies, banks and other institutional investors participated and the final order book was oversubscribed by four times, it said.

This is the second such outing for the company, and it becomes the only Indian private sector NBFC to have accessed the USD bond market with an investment grade rating at the time of issuance.

The issue has been done under its USD 2 billion external medium-term notes programme and supports diversification of funding sources.

Tata Capital shares closed 0.48 per cent up at Rs 357.50 on BSE on Wednesday as against gains of 0.17 per cent on the benchmark Sensex.