Debt financing
Private Credit funds to invest Rs.3,000-Cr in JSW Group’s Rs.9,300-Cr fund raise for Akzo Nobel acqu
The JSW Group has raised INR 9,300-crore to fund the buy out of Amsterdam-based paints firm Akzo Nobel's Indian operations. The deal involves three separate tranches - an operating company-level debt of around INR 3,300 crore, a INR 3,000-crore convertible instrument at holding company, and about INR 3,000 crore loan against shares at the promoter level.The operating company debt of INR 3,300 crore is being raised through a syndicate of foreign lenders, including SMBC, MUFG, Mizuho, Barclays, JPMorgan and DBS. The loan is priced at 10% plus withholding tax.Another INR 3,000 crore is being raised via a loan against shares from domestic mutual funds, including Kotak Mutual Fund structured at an interest rate of around 8.5%. This tranche is backed by the shares of a listed group company, helping bridge the funding requirement at the promoter level.An additional fundraise of INR 3,000 crore is through convertibles at the holding company level from private credit funds.
Want to receive such news items in your inbox? Click Here to sign up for a trial.
