Tata Capital priced $400 million in dollar bonds at 107 bps over Treasuries, 33 bps tighter than guidance, in its second offshore debt issue.
Alpha Score of 57 reflects moderate overall profile with strong momentum, moderate value, weak quality, weak sentiment.
Tata Capital raised $400 million through a dollar-denominated bond sale on Wednesday, pricing the three-and-a-half-year notes at a spread of 107 basis points over US Treasuries. That was 33 bps tighter than the initial guidance of 140 bps, the non-banking financial company said in a release.
The coupon works out to 5.3320%. CreditSights had expected a spread of 115 bps.
HSBC, MUFG and Standard Chartered Bank acted as joint global coordinators and bookrunners. The notes carry an S&P rating of BBB, matching the issuer's own rating.
“It is our first issuance following our S&P ‘BBB’ rating upgrade and successful equity listing, and an important step in further diversifying our funding mix and extending our access to international capital markets,” Managing Director and Chief Executive Officer Rajiv Sabharwal said. The proceeds will go toward onward lending and other activities under External Commercial Borrowing rules.
This is Tata Capital's second dollar debt issue. In January 2025, it raised $400 million with a similar maturity at a coupon of 5.3890% and a spread of 92 bps over Treasuries. The latest deal achieved the largest pricing tightening for a single-tranche investment-grade dollar bond from India this year, the company said.
Other non-bank lenders have tapped the offshore market recently. IIFL Finance raised $300 million through a four-year social bond last month. Capri Global has also started plans for a dollar debt sale.
MUFG, one of the joint bookrunners on the deal, carries an Alpha Score of 57 out of 100, a Moderate label. The Japanese bank's involvement underscores the demand for Indian credit among international investors. For more on MUFG, see the MUFG stock page.
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