India's Tata Capital tightens bond spread as dollar debt draws robust demand, bankers say

Tata Capital

16/07/2026 03:34

By Dharamraj Dhutia
MUMBAI, July 16 (Reuters) - India's Tata Capital TATC.NS has accepted bids worth $400 million for its planned 3-1/2-year U.S. dollar-denominated bond issue at a coupon sharply below initial price guidance, two merchant bankers said on Thursday.
The non-banking financial company will issue these bonds at a spread of 107 basis points above U.S. Treasuries, 33 basis points tighter than the initial guidance of 140 bps, the bankers said. 
The coupon currently works out to 5.3320%, and the issue attracted bids worth around $2 billion, indicating strong demand for the offering, they added. 
The bankers requested anonymity as they are not authorised to speak to the media. The company did not reply to a Reuters email seeking comment.
CreditSights had expected the coupon to be priced at a spread of 115 bps above U.S. Treasuries. 
The notes are likely to be rated "BBB" by S&P and "BBB-" by Fitch Ratings, in line with the issuer's own ratings.
Proceeds from the issue will be used for onward lending and other activities in accordance with External Commercial Borrowing guidelines.
This would be the second dollar debt issue by the company, which is part of the Tata Group conglomerate.
In January 2025, Tata Capital raised $400 million through its debut dollar debt issue with a similar maturity and a coupon of 5.3890%. The paper was sold at a spread of 92 bps over Treasury.
Over the last month, non-bank lender IIFL Finance raised $300 million through a 4-year social bond, while non-bank lender Capri Global has also initiated its plans for a dollar debt sale.


 (Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)
 ((Dharamraj.Dhutia@thomsonreuters.com;))