Two Indian NBFCs could tap dollar bond market next week, bankers say

IIFL Finance

10/01/2025 08:06

By Dharamraj Dhutia
       MUMBAI, Jan 10 (Reuters) - Two Indian non-banking
finance companies (NBFC) could raise about $900 million through
the U.S. dollar bond market by the end of next week, merchant
bankers aware of the developments said on Friday.
    Tata Capital may raise around $500 million through its debut
bond offering, while IIFL Finance  IIFL.NS  is likely to raise
$400 million in its first dollar bond sale in four years, the
two bankers said. 
    Tata Capital is looking to raise funds through the sale of
bonds maturing in three years and six months, while IIFL Finance
will opt for a three-year issue, the bankers said, requesting
anonymity as they are not authorised to speak to the media. 
    Both the companies are in various stages of investor
roadshows, and the pricing is expected to be finalised early
next week, they added.
    IIFL Finance could also take some part of the funding
through a dollar loan, one of the bankers said.  
    The firms did not respond to a Reuters email seeking
comment. 
    Last September, Reuters reported that IIFL Finance could
test the dollar bond market to raise funds by March 2025. 
    In February, Tata Capital was said to be exploring overseas
fundraising for the first time in the financial year that starts
in April this year, according to a Reuters report.
    The developments come after the Export Import Bank of India
(EXIM), earlier this week, raised $1 billion through the sale of
10-year dollar bonds, opening the gates for other issuers to
follow suit. 
    The aggressive pricing for EXIM's dollar debt could mean yet
another robust year for such papers, investors said. 
    Indian firms raised around $12.05 billion via dollar bonds
last year, more than double the $5.70 billion raised in 2023,
according to Cbonds, a financial data aggregator.

 (Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)
 ((Dharamraj.Dhutia@thomsonreuters.com;))