Barclays backs Rakesh Jhunjhunwala's Zydus Cadila deal: Report

REPL issued non-convertible debentures (NCD) in two tranches, with maturities of three years and one day, and four years and one day, generating a yield of around 7.75 percent for Barclays (Illustration: Moneycontrol)

Rakesh Jhunjhunwala's recent acquisition of a stake in Zydus Cadila's animal healthcare business has been funded by Barclays. An arm of Barclays bought out the entire Rs 500-crore zero-coupon bond offering by Jhunjhunwala's Rare Equity Private Ltd (REPL), The Economic Times has reported.

Moneycontrol could not independently verify the report.

Jhunjhunwala was yet to respond to an email sent by The Economic Times. A Barclays Bank India spokesperson said the bank would not comment on the matter.

The fundraising was backed by a pledge of shares and personal guarantee of the investor and his wife Rekha Jhunjhunwala.

REPL issued non-convertible debentures (NCD) in two tranches, with maturities of three years and one day, and four years and one day, generating a yield of around 7.75 percent for Barclays, the report said.

"It's a very good rate for the borrower...it's kind of name lending," a bond market source told the publication.

The arm of the British Bank made the investment through the Reserve Bank of India's "voluntary retention route" (VRR), the report said.