Tata Capital Raises $400M via First USD Bond Issue

One of India’s largest diversified NBFC, Tata Capital Limited, has successfully raised USD 400 million Fixed Rate Senior Unsecured Reg S Bond for a 3.5-year tenor at an interest rate of 5.389%. This marks the maiden USD bond issuance by the Company.

The Company engaged with global investors in Hong Kong, Singapore and London. On the back of strong investor interest, the transaction was launched with an initial price guidance of UST + 125 bps. Following a strong book building, supported by high quality investors, the Company was able to tighten pricing by 33bps to UST + 92 bps.

The bond received an overwhelming response from investors, with the final order book over-subscribed more than 4 times. The transaction witnessed global investor participation from Asia and EMEA across asset managers, insurance Companies, banks and others.

Key Transaction Highlights

• First Investment Grade rated issuance from a Tata Group company
• First Investment Grade rated issuance by a private sector NBFC from India
• Tightest spread over US Treasuries ever achieved for a 3/3.5-year USD-denominated, public, fixed-rate bond issuance by a BBB- rated Issuer from South and South East Asia

BNP Paribas, HSBC, Standard Chartered Bank and MUFG acted as Joint Global Coordinators and Joint Bookrunners while J P Morgan acted as Joint Bookrunners for this transaction.

Commenting on the successful bond issuance, Rajiv Sabharwal, Managing Director and Chief Executive Officer, Tata Capital Limited, said, “We would like to thank global fixed income investors for the overwhelming support to our debut USD bond issuance. The success of the transaction illustrates the confidence of investors in Tata Capital's strong credit profile, backed by its focus on a diversified and granular loan book. The transaction will further strengthen our liability profile and diversify our funding sources.”