The Tata Group plans to obtain ₹2,000 crore through bond issues because Tata Power Renewable Energy and Tata Communications are returning to the debt market. The 10-year bonds worth ₹1,000 crore from Tata Power Renewable will be issued because of its AA+ rating which attracts insurer investors. The company issued its second bond of the current financial year by raising ₹1,000 crore through 15-year bonds at 7.55% interest after its first bond issue in April.
Tata Communications plans to obtain ₹1,000 crore through bonds with a three-year maturity period. The company has not issued bonds since 2021 and mutual funds will serve as its primary investors for this bond issue. The notes carry a AAA rating from CARE Ratings while their pricing will be 100 basis points below the 7.75% coupon rate from the 2023 issue.
The bond issues from Tata Communications and Tata Power Renewable Energy are near completion as foreign banks negotiate to manage the Tata Communications deal. The corporate debt market in India shows strong demand which enables Tata Group companies to obtain beneficial borrowing terms.
