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, planning to raise around $750 million via offshore bonds or loans in the next fiscal year starting in April, a Reuters report quoting sources said. 

"The company, as a part of diversifying its liability base, may evaluate raising up to $750 million through overseas 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 overseas borrowings, we may also evaluate dollar bonds as there has been lot of interest by overseas investors in Indian corporates."

Fundraising via dollar-denominated bonds by Indian corporates touched a 14-year low of $4.1 billion in 2023, as Fed rate hikes pushed U.S. yields against which these bonds are benchmarked, sharply higher.

It has bounced back in recent months. State Bank of India, HDFC Bank and Shriram Housing Finance have raised an aggregate of $2.1 billion via 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 rate cuts," said Soumyajit Niyogi, a director at India Ratings, a fully owned subsidiary of the Fitch Group.