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Tata Capital Housing Finance has accepted bids worth INR 5.25 billion through the reissue of its May 2030 bonds, according to bankers. The bonds will carry a yield of 7.7303%, following commitment bids invited recently. The issuance comes as companies continue to tap the domestic debt market to meet funding requirements amid stable demand from institutional investors for highly rated corporate bonds. The company has not commented on the development. Other issuers, including Summit Digitel and State Bank of India, are also in the market with bond offerings.
Tata Capital Housing Finance has accepted bids worth INR 5.25 billion for the reissue of its May 2030 bonds, according to three bankers familiar with the development. The company has fixed the yield at 7.7303% for the bond reissue after inviting commitment bids in the past week. The reissued securities have a remaining maturity of around three years and 10 months. Tata Capital Housing Finance did not immediately respond to Reuters' request for comment on the bond issuance.
The company holds the highest credit rating of AAA from both ICRA and CRISIL, reflecting its strong credit profile. Highly rated non-banking financial companies (NBFCs) and housing finance companies have continued to access the domestic bond market to diversify their funding sources and reduce dependence on bank borrowings. Reissuances of existing bonds also help improve liquidity in the secondary market by increasing the outstanding size of individual securities.
According to market participants, the domestic corporate bond market has remained active, with several issuers raising funds through private placements amid steady demand from institutional investors such as mutual funds, insurance companies and banks.
Other debt market transactions reported during the period include Summit Digitel, which raised INR 12 billion through bonds maturing in four years and 11 months at a coupon of 7.5050%, payable quarterly. Meanwhile, State Bank of India is scheduled to raise funds through a perpetual bond issue with a base size of INR 30 billion and a greenshoe option of INR 20 billion. The final coupon for SBI's issue is yet to be decided. Summit Digitel's bonds have been rated AAA by CARE Ratings and CRISIL, while SBI's perpetual bonds carry an AA+ rating from CRISIL and CARE.
Source Reuters
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