Tata Capital is going on a $750-million foreign fund chase for the first time

Tata Capital is eyeing overseas fundraising for the very first time, and plans to raise about USD 750 million via offshore bonds or loans in the next fiscal year starting in April, a Reuters report quoting sources said.

“The company, as part of diversifying its liability base, may evaluate raising up to USD 750 million through external loans or bonds in FY25,” said Rakesh Bhatia, chief financial officer at the non-bank financial company (NBFC).

The company is likely to start roadshows for the same by the end of March, the report said. “For foreign borrowings, we may also look at dollar bonds, as there has been a lot of interest from foreign investors in Indian companies.”

Fundraising through dollar-denominated bonds by Indian companies hit a 14-year low of USD 4.1 billion in 2023, as federal interest rate hikes sharply lift benchmark US yields.

He has recovered in recent months. State Bank of India, HDFC Bank, and Sriram Housing Finance raised a total of USD 2.1 billion through dollar bonds in the first two months of 2024.

“Indian companies are increasingly tapping overseas markets for fundraising as U.S. yields have eased and there are expectations of lower interest rates,” said Soumyajit Neogi, director of India Ratings, a fully-owned subsidiary of Fitch Group. 

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