Vedanta leads India surge in dollar loans to fund local buyouts
Vedanta leads India surge in dollar loans to fund local buyouts – Massive borrowing by Vedanta Resources Ltd. has helped push up Indian firms’ dollar loans to fund the privatization of companies and acquisitions to the foremost in six quarters.
After raising a $1.75 billion facility in August to finance an idea to require its Indian unit private, Vedanta, the London-based commodity conglomerate controlled by billionaire Anil Agarwal, raised and is in talks with banks for an extra $600 million. As a result, Indian borrowers are set to urge a minimum of $2.6 billion of dollar event-driven loans this quarter, making this the foremost active since the primary three months of 2019, consistent with Bloomberg-compiled data.
With the lower infusion of cash from global policymakers and surge in global liquidity to see the pandemic’s economic fallout is bolstering demand among international lenders for facilities from markets including China, India, and Indonesia benefiting the company sector, and therefore the nation’s borrowers seeking India’s $277 billion pandemic stimulus and dollars have seen loan rates drop from four-year highs within the June quarter.
Baring Private Equity Asia, which began marketing a $600 million buyout loan last month to back the delisting of unit Hexaware Technologies Ltd. and repay dollar bonds. KKR & Co., meanwhile, launched a $206 million borrowing to syndication to finance the acquisition of a controlling stake in J.B. Chemicals & Pharmaceuticals Ltd.
Vedanta Resources is additionally in talks with banks for an extra $600 million to finance the delisting of its Indian unit, consistent with people with knowledge of the matter.
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