The senior unsecured notes will constitute direct, unconditional, and unsubordinated obligations of the issuer. They shall at all times rank equally with all other senior unsecured obligations of the finance company, the rating agency said.
Under the MTN programme, Tata Capital may also issue index-linked notes. Under our rating criteria, we do not rate the notes if principal payments are linked to fluctuations in equity or commodity prices, or equity or commodity indices, the agency added.
Earlier this year, the Reserve Bank had approved the merger of Tata Motors Finance with Tata Capital, forming the 12th largest NBFC in the country. Under the RBI regulations, Tata Capital has to go public by next September.
As of March 2024, Tata Capital had a wide funding base from multiple lenders, including NCDs at 39 percent, term loans at 42 percent and external commercial borrowings at 7 percent.
For the financial year 2024, Tata Capital had reported a net profit of Rs 2,492 crore on revenue of Rs 13,309 crore.