Indian business group JSW Group is planning to raise around ₹4,000 crore (about $468 million) through loans to help fund its deal to buy a majority stake in Akzo Nobel’s Indian business.
The group is currently in talks with global banks like Barclays, Mitsubishi UFJ, and Standard Chartered to arrange the loan. The loan is likely to be in Indian rupees.
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JSW is also speaking with international private credit firms such as Ares Management, Cerberus Capital, and Farallon Capital, but nothing has been finalized yet. Morgan Stanley, one of the banks involved in the acquisition deal, is expected to take part in arranging the funding as well.
Recently, JSW agreed to buy up to 75% of Akzo Nobel’s India unit in a deal worth around $1.6 billion, including debt. This move is part of JSW’s plan to grow in the paint and coatings sector.
If the loan is raised in the form of rupee bonds, it would add to the strong growth in India’s local debt market. So far this year, companies have raised about ₹6.5 trillion ($76 billion) in bonds—an increase of more than 28% compared to last year.
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Acquisition-related funding is becoming more popular among global lenders in India, especially private credit firms. A report by Ernst & Young says there has been a big focus on such deals in the second half of 2024.
The planned loan might be raised in multiple parts, with a repayment period of up to 3 years. However, the final details—like the currency, exact amount, and structure—are still being worked out.
Some companies like Ares and Standard Chartered declined to comment, while others, including JSW and Barclays, haven’t responded yet.
