Barclays Capital is assisting the Hinduja Group in raising approximately Rs 4,300 crore (around $515 million) through the sale of high-yield rupee bonds, according to sources familiar with the matter, as reported by Mint. This marks the group's second phase of fundraising aimed at acquiring the bankrupt financier.
However, the funding is contingent on receiving 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), as per the Mint report.
The Hinduja Group is seeking to secure a total of Rs 7,300 crore (approximately $873 million) in debt to complete the acquisition, which has been cleared by the National Company Law Tribunal (NCLT) but has encountered delays due to regulatory and financing challenges.
"The capital has been raised by 360One, while Barclays has secured commitments for bond issuance. The funds are currently held in escrow and will be released pending regulatory clearances," sources told Mint.
Barclays is underwriting Rs 1,500 crore of the bond alongside wealth manager 360One, and will manage the remaining Rs 2,800 crore independently, according to another source.
The global investment bank is expected to subscribe to Rs 800-1,000 crore of the bond issue before downselling to a mix of institutional investors, including Allianz, Bank of America, JP Morgan, and Edelweiss' Special Opportunities Fund.
Barclays is leading the second tranche of bond issuance for the Hinduja Group’s acquisition of the bankrupt Reliance Capital, underwriting part of the issue and selling the remainder to global investors.
According to the Mint report, Additional participants are expected to include PAG, Varde, and Standard Chartered, with the second tranche likely to be finalised within 2-3 weeks. Institutional investments are expected to range from $25 million to $70 million.
The bond is competitively priced with a coupon rate of 15 percent, lower than the 16-17 percent anticipated by many market participants, according to a private credit fund official.
The second tranche will be issued by IndusInd International Holdings Ltd, an offshore Hinduja Group entity, backed by unencumbered listed shares of IndusInd Bank valued at Rs 2,500 crore.
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