Two infrastructure units of the Tata Group are contemplating re-entering the corporate bond market in the near future following a hiatus of more than 15 months, according to statements from two merchant bankers on Tuesday.
“Both the companies have alerted merchant bankers, and are waiting for the rates to ease further before tapping the market,” noted one of the bankers, who requested anonymity because they are not permitted to brief the media.
Tata Projects, however, did not respond to an email requesting comment, while Tata Steel stated, as reported by Reuters, “We do not have any imminent plans for any issuances of bonds.”
Prior to the RBI’s monetary policy announcement, yields on highly-rated AAA corporate bonds with maturities of two to five years had rose past 8 per cent, marking their highest level since early 2019, based on LSEG data, but have since tumbled by roughly 50 basis points.
Tata Steel, which currently holds more than 150 billion rupees in outstanding bonds, faces a 10-billion-rupee bond maturity coming up in October.
The AAA-rated borrower last raised capital in the bond market back in February 2025, pulling in 30 billion rupees through five-year bond at a 7.65 per cent coupon rate, while the AA-rated Tata Projects raised 5 billion rupees that same month via six-year bonds yielding an 8.60 per cent coupon.
