Tata Capital Raises $400 Million Via Dollar Bond Issuance

Tata Capital Limited, a non-banking financial company within the Tata Group, raised $400 million through its second issuance of U.S. dollar-denominated bonds. The 3.5-year Fixed Rate Senior Unsecured Reg S bonds were priced at 107 basis points over the three-year US Treasury, resulting in a final coupon rate of 5.332%.

The final pricing was significantly lower than the initial guidance of 140 basis points. This 33-basis-point difference represents the highest tightening for a single-tranche Investment Grade USD bond from India in 2026. The offering generated strong demand from banks, insurance companies, and asset managers across Europe and Asia, with the order book peaking at $2.10 billion.

This transaction marks the company's first dollar debt issuance since receiving a BBB rating upgrade from S&P Global Ratings and completing an equity listing. The company intends to use the proceeds for onward lending and other activities following External Commercial Borrowing guidelines to diversify its funding mix and support long-term growth. HSBC, Standard Chartered, and MUFG served as the bankers for the transaction.