Tata Steel may enter the bond market after a long break

The last time the company entered the bond market was in March 2024

Indian steelmaker Tata Steel intends to enter the corporate bond market after a break of almost a year. Reuters reports this with reference to sources.

According to one of the sources, the company is already in talks with commercial bankers and investors, offering different maturities, and will finalize one or two of them based on the levels it receives.

Another insider noted that the steelmaker is flexible on maturity and is discussing the possibility of issuing bonds with 3, 5, 7 or even 10-year maturities.

With this bond issue, Tata Steel is likely to raise about 30 billion rupees ($345.6 million), and it could be completed by the end of this month.

The last time Tata Steel entered the bond market was in March 2024, when it raised Rs 27 billion through a three-year bond with a coupon of 7.79%. The company currently has over Rs 128 billion worth of bonds outstanding, with 6.7 billion due in March.

As GMK Center reported earlier, Tata Steel recently unexpectedly reported a profit in the third quarter of fiscal year 2024/2025 (October-December 2024) despite weak performance in Europe and falling domestic prices amid rising steel production in India.

In April-December last year, Tata Steel increased steel production in India by 5% year-on-year – to 16.2 million tons. In the period under review, shipments increased by 5.9% y/y – to 15.3 million tons, while domestic shipments grew by 4%.