Barclays Capital is set to assist the Hinduja Group in raising around Rs 4,300 crore (approximately $515 million) through high-yield rupee bonds, according to a report by Mint. This funding marks the second phase of Hinduja’s efforts to finance its acquisition of the bankrupt Reliance Capital. The deal, however, hinges on regulatory approvals from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Department for Promotion of Industry and Internal Trade (DPIIT).
Hinduja Group aims to secure a total of Rs 7,300 crore (roughly $873 million) in debt to complete the acquisition, which has been approved by the National Company Law Tribunal (NCLT) but has faced delays due to regulatory and financing obstacles.
Sources confirm that 360One has already raised the capital and Barclays has commitments for bond issuance. The money has been kept in an escrow and would be released upon regulatory clearance. Barclays is underwriting Rs 1,500 crore of the bond, with participation of 360One and will manage the remaining Rs 2,800 crore on its own.
Barclays is likely to subscribe to ₹ 800-1,000 crore of the bond issue before selling it to institutional investors including Allianz, Bank of America, JP Morgan, and Edelweiss’ Special Opportunities Fund. The other participants would include PAG, Varde, and Standard Chartered, with the second tranche likely to close in two to three weeks.
This makes the bonds relatively competitively priced, considering that the 15% coupon rate is lower than the range of 16-17% expected from the market. The second tranche would be issued by IndusInd International Holdings Ltd, offshore of the Hinduja Group, and backed by unencumbered shares of IndusInd Bank aggregating Rs 2,500 crore.
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Source: Moneycontrol
News Desk
