Two of the Tata Group’s infrastructure units are set to return to the corporate bond market in the coming days, after more than 15 months, two merchant bankers said on Tuesday.
Indian corporate bond yields have eased after the Reserve Bank of India maintained key policy rates unchanged last week, providing some relief to the market.
is set to raise ₹3,000 crore ($313.23 million) through a sale of five-year bonds, while Tata Projects, a real estate firm, could raise ₹500 crore to to ₹1,000 crore through a combination of three-year and five-year papers.
“Both the companies have alerted merchant bankers, and are waiting for the rates to ease further before tapping the market,” one of the bankers said.
The bankers asked not to be named as they are not authorised to speak to the media. Tata Projects did not reply to an email seeking comment, while Tata Steel said, “We do not have any imminent plans for any issuances of bonds.”
Before the RBI’s rate decision, yields on AAA-rated two-to-five-year corporate bonds rose past 8 per cent, their highest level since early 2019, according to LSEG data, and have crashed by around 50 basis points since.
Tata Steel, which has over ₹15,000 crore in outstanding bonds, has a ₹1,000-crore maturity coming up in October. The AAA-rated borrower last tapped the market in February 2025, raising ₹3,000 crore via five-year bonds at a 7.65 per cent coupon.
During the same month, AA-rated Tata Projects raised ₹500 crore by selling six-year bonds at 8.60% coupon.
($1 = 95.7750 Indian rupees)