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.
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.