Indian conglomerate JSW Group is in talks with global lenders to raise about Rs 40 billion ($468 million) to partly fund its purchase of Akzo Nobel NV's local business, according to people familiar with the matter.
Foreign banks including Barclays Plc, Mitsubishi UFJ Financial Group Inc. and Standard Chartered Bank Plc will arrange the debt, which is expected to be denominated in rupees, said the people, who asked not to be identified because the information is confidential.
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JSW Group has also reached out to international private credit funds including Ares Management Corp, Cerberus Capital Management and Farallon Capital Management though nothing has been finalized yet, said the people. Morgan Stanley, a bank on the acquistion, will also be involved in the borrowing, two of the people said.
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JSW Group agreed to buy up to 75% of Akzo Nobel NV's Indian business in a deal valued at about $1.6 billion, including debt, as the Indian conglomerate seeks to expand its presence in areas such as paints.
A rupee bond deal would be a boon for supply in India's booming local debt market, which year to date has seen issuance of 6.5 trillion rupees ($76 billion), up 28.4% from a year ago, according to data compiled by Bloomberg.
Acquisition financing has been a bright spot for global lenders in India, particularly private credit funds. In the second half of 2024, private credit deals showed a “strong focus” on such deals, global consulting firm Ernst & Young wrote in a report.
The planned debt could be raised in multiple tranches and levels, and the tenor could be up to three years, said the people. The terms and currency of the deal are not yet final and could still change, they added.
Ares and Standard Chartered declined to comment. JSW Group, Barclays, Mitsubishi and other lenders did not immediately respond to requests for comment.
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