Tata Capital plans to raise $750 mn via ECBs under $2 bn MTN programme

Tata Capital, the financial services arm of the Tata group, is seeking to ring in up to $750 million through external commercial borrowing (ECB) as part of its $2 billion medium-term note (MTN) programme.

The proceeds will be used for on-lending and other businesses, according to bankers familiar with the matter.

The fundraising comes as the company prepares for an initial public offering (IPO), expected by September. The IPO is awaiting shareholder approval.

In December, Tata Capital sought clearance from the Reserve Bank of India (RBI) to mobilise over $750 million from international markets.