Tata Capital Finance NCD opens on August 13

Mumbai: Tata Capital Financial Services (TCFSL) is coming out with maiden, debt offer of NCDs with a base size of Rs 500 crore. Issue consists of Rs 2,997.90 crore secured non-convertible debentures and Rs 1,128.10 crore unsecured non convertible debentures aggregating to Rs 4,126 crore.

These NCDs will have tenures of three years, five years, eight years and ten years, with interest rates in the range of 8.35 per cent to 8.75 per cent for category I and II while coupon rates will be 8.45 per cent to 8.85 per cent for Category III and IV.

The minimum application is to be made for 10 NCDs and in multiple of 1 NCD thereon, thereafter. The allotment will be in demat mode only and will be made on ‘First come – First Serve’ basis. Issue opens for subscription on August 13 and will close on or before August 23, 2019. Post allotment, it will be listed on BSE and NSE.

Issue is jointly lead managed by Edelweiss Financial Services Ltd., A K Capital Services Ltd. and Axis Bank Ltd. Karvy Fintech Pvt. Ltd. is the registrar to the issue and Vistra ITCL (India) Ltd. is the Debenture Trustee. Post issue TCFSL’s debt-equity ratio will stand enhanced to XX from current XX.This issue is rated CRISIL/AAA-Stable by CRISIL and CARE/AAA-Stable by CARE. The ratings of the NCDs indicate highest degree of safety regarding timely servicing of financial obligations.

Tata Capital eyes $150 mn overseas borrowing

TCFSL is planning to raise USD 150 million from overseas market next quarter, a senior official said Thursday. The Tata Group company is also planning to raise up to

Rs 4,126 crore through a domestic bond sale next week. "We want to diversify our borrowings and also look at cheaper funding sources," Tata Capital, managing director and chief executive, Rajiv Sabharwal said. Treasury, head, Kiran Joshi told PTI that the company is looking to raise USD 100-150 million through the external commercial borrowings route next quarter. The financier to individuals and small businesses had raised USD 75 million in ECBs since the troubled NBFC were allowed to raise money through this route earlier this year. The landed cost of overseas money is much than domestic funds, Joshi explained.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal