Tata Capital Raises $400 Million From Global Bond Sale At 5.332%

Tata Capital has closed a $400 million bond sale in international markets, priced at 107 basis points over the three-year US Treasury, with a fixed coupon of 5.332%. The non-banking finance company of the Tata Group generated a peak order book of $2.10 billion, making the issue four times oversubscribed.

The bonds carry a 42-month tenor and were structured as a fixed-rate senior unsecured regulation S (Reg S) transaction, open to investors in Asia and Europe but not the United States. Asset managers, insurance companies, banks and other institutional investors from Asia and the Europe, Middle East and Africa region dominated the demand.

Pricing came in significantly tighter than initial guidance. The company launched the deal at 140 basis points above the three-year US Treasury and tightened to 107 basis points as the order book built, reflecting strong investor appetite for Indian investment-grade paper.

Tata Capital shares closed 2.12% lower at ₹350 on Thursday.

Second Overseas Bond, Same Size As The First

This marks Tata Capital's second international bond issue. The company made its debut in January 2025, when it raised $400 million through bonds with a three-and-a-half-year maturity. Those bonds were priced 92 basis points above the three-year US Treasury.

The latest fundraising is part of Tata Capital's $2 billion external medium-term notes programme. The programme was set up to diversify the company's funding sources.

Managing Director and Chief Executive Rajiv Sabharwal said the fundraise will support the company's liability profile and long-term growth strategy. A Tata Capital spokesperson did not respond to a separate request for comment.

Investment Grade Distinction

Tata Capital became the only Indian private sector non-banking finance company to access the dollar bond market with an investment-grade rating at the time of issuance, the company said.

HSBC, Standard Chartered and MUFG acted as bankers to the issue.

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