India’s Tata Capital has set initial price guidance for its upcoming U.S. dollar-denominated bond issuance at U.S. Treasuries plus 140 basis points.
The non-banking financial company aims to raise between $400 million and $600 million through the issue, with bankers indicating that final pricing is expected to be determined by the end of this week.
The spread reflects the current cost of capital for Indian corporate borrowers in the offshore market.
Tata Capital’s move comes as the US bond market faces a critical test of investor demand for longer-dated maturities.
Auctions of 10- and 30-year Treasuries are set to dominate an otherwise light calendar for economic events this week, creating a backdrop of heightened scrutiny for new issuance.
For investors, the final pricing of the Tata Capital bonds will serve as a barometer for appetite for emerging-market credit amid domestic supply pressures.