Sun Pharma plans Rs.10,000-Cr bond sale to refinance loan for Organon acquisition

Mumbai-headquartered Sun Pharmaceutical Industries is planning to raise approximately INR 10,000 crore (USD 1.04 Billion) through a rupee-denominated bond sale. The company intends to use these funds to partially refinance an 18-month bridge loan that was used earlier this year to acquire the US-based healthcare firm Organon & Co.Sun Pharma plans to issue bonds with two, three, and four-year maturities. This debt issuance is part of an effort by Indian firms to lock in borrowing costs amid rising US Treasury yields and potential interest rate hikes by the Reserve Bank of India.The company’s acquisition of Organon & Co. involved a syndication of a nearly USD 12 Billion bridge loan, a transaction that included the State Bank of India.