By Dharamraj Dhutia
MUMBAI (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 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)
