Capri Global Capital plans its first dollar bond issue, targeting $300M with a 3.25-year tenor. The move aligns with a push to raise capital market borrowings to 40-50% of its book.
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Capri Global Capital is entering the foreign currency debt market for the first time. The non-banking finance company plans to raise funds through dollar-denominated bonds with a 3.25-year tenor, two merchant bankers said Monday.
Investor calls are scheduled for Tuesday. Pricing is expected before the end of this week, the bankers added. They requested anonymity because they are not authorized to speak to media.
Capri Global did not reply to a Reuters email seeking comment.
The company may target around $300 million. If demand proves strong, a $500 million benchmark-size issue is possible, one of the bankers said.
In April, Capri Global raised ₹5 billion ($53 million) through a public issue of rupee debt. Managing Director Rajesh Sharma had said earlier this financial year that the company, with assets under management of roughly ₹300 billion ($3.2 billion), would increase the share of capital market borrowings on its books. Capital markets accounted for about 20% of total borrowings. Sharma aimed to push that to 40%-50%.
A dollar bond debut gives Capri Global access to a broader investor base and a new source of longer-duration funding. Indian NBFCs have historically relied on bank loans and domestic bonds. A successful dollar issue would signal that international credit markets see the company’s credit profile as investment-grade, or at least as a name worth buying at the right spread.
The tenor – three years and three months – is short enough to attract money-market investors while giving the company a modest maturity extension versus domestic alternatives. Pricing will reflect where Capri Global’s credit lands relative to the Indian rupee yield curve and the dollar cost of funds for similar-rated emerging-market issuers.
Demand for Indian corporate dollar debt has picked up this year as global funds search for yield outside developed markets. Capri Global’s issue will test whether that appetite extends to mid-sized NBFCs with a retail-heavy lending book.
The bankers said the company will finalize pricing before the end of this week. Investor feedback from the Tuesday calls will determine how much of the $300–$500 million range is achievable.
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