Tata Capital gives dollar bond guidance, final price by this week, bankers say

MUMBAI: India’s Tata Capital has given an initial price guidance of U.S. Treasury plus 140 basis points for its U.S. dollar-denominated bonds maturing in three-and-a-half years, two merchant bankers aware of the matter said on Wednesday.

The non-banking financial company may look to raise between $400 million and $600 million through this issue, with pricing to be finalised before the end of this week, the bankers added.

The notes would be rated BBB by S&P, and BBB- by Fitch Ratings, in line with the issuer’s own rating.

The bankers requested anonymity as they are not authorised to speak to the media. The company did not reply to a Reuters email seeking comment.

The proceeds from the bonds will be applied for onward lending and other activities, in accordance with extant External Commercial Borrowing (ECB) guidelines.

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This would be the second-ever dollar debt issue by the company, which is part of the Tata Group conglomerate.

In January 2025, the company raised $400 million through its debut dollar debt issue with a similar maturity and a coupon of 5.3890%. The paper was sold at a spread of 92 bps over Treasury.

Over the last month, non-bank lender IIFL Finance raised $300 million through a four-year social bond, while non-bank lender Capri Global has also initiated its plans for a dollar debt sale.