(Bloomberg) -- India's education-focused Narayana Group has mandated Barclays Plc as the sole arranger of a loan worth around 14 billion rupees ($169 million) to buy out minority shareholders in unit Nspira Management Services Pvt., according to people familiar with the matter.
The minority shareholders are Morgan Stanley Private Equity, which holds a stake of around 19% in Nspira, and BanyanTree Finance Pvt. that owns less than 5%, said the people who requested anonymity discussing private matters.
The loan is still open for subscription, the people said. Banks and private credit funds are among current participants, according to one of the people.
Barclays, Morgan Stanley Private Equity, and BanyanTree Finance declined to comment. Narayana and Nspira didn't immediately respond to requests for comment.
Still a fledgling business in Asia, private lenders have grown their presence in the region by tapping demand among small businesses that banks have been reluctant to serve. For one, private credit funds have stepped up lending to Asia's education sector in recent months, including a S$265 million ($196 million) loan to Singapore-based tuition chain The Learning Lab and $190 million of funding to partially fund Global Schools Group's expansion.
Morgan Stanley Private Equity through one of its funds in 2018 acquired its stake in Nspira for about $70 million, according to a statement at that time by Nishith Desai Associates LLP, a law firm which was an advisor of the deal.
Narayana Group includes a network of more than 750 schools, colleges, coaching centers, and professional colleges across 23 Indian states, according to its website.
Nspira is a management services firm based in Hyderabad.
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