Hero FinCorp plans offshore bond issuance for up to $300M.

Hero FinCorp plans offshore bond issuance for up to $300M.

Mumbai: Hero FinCorp, a non-banking financial company (NBFC) part of the Hero Group, is considering its first offshore bond issuance, potentially raising up to $300 million through a dollar-denominated bond. The company, which is the lending arm of Hero MotoCorp, India's largest two-wheeler manufacturer, conducted non-deal roadshows in Hong Kong and Singapore last week to gauge investor interest [1].

The roadshows were arranged by HSBC and aimed to assess investor appetite for the proposed issue. While the timing and structure of the issuance are yet to be finalized, the deal is under active consideration. The potential offering follows the company's $200 million syndicated loan discussion in April. Hero FinCorp is looking to diversify its funding base beyond home before its planned initial public offering (IPO) [1].

The company's offshore bond issuance is a strategic move to tap into international capital markets and reduce its reliance on domestic funding sources. This initiative aligns with the broader trend of Indian NBFCs seeking to raise funds from global investors to support their growth and expansion plans.

In a related development, Poonawalla Fincorp, another Indian NBFC, has also announced plans to raise funds through a bond issuance. The company intends to sell bonds maturing in five years and six months, with an issue size of 16 billion rupees ($184.84 million) [2]. This issuance is part of the company's efforts to enhance its liquidity and strengthen its balance sheet.

The offshore bond market in India has been gaining traction in recent years, with several NBFCs exploring this avenue to raise funds. The global bond market offers a broader range of investors and more competitive pricing, making it an attractive option for Indian companies looking to diversify their funding sources.

As Hero FinCorp and other Indian NBFCs continue to explore offshore bond issuances, it will be essential to monitor the developments and assess their impact on the broader financial landscape. The successful execution of these deals could pave the way for further growth and expansion in the Indian NBFC sector.

References:
[1] https://economictimes.indiatimes.com/markets/bonds/hero-fincorp-plans-first-offshore-bond-issuance-to-raise-300-million/articleshow/122035788.cms?UTM_Campaign=RSS_Feed&UTM_Medium=Referral&UTM_Source=Google_Newsstand
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3SQ068:0-poonawalla-fincorp-to-issue-over-5-year-bonds-bankers-say/