JSW Group has secured a Rs9,300-crore financing package to fund the acquisition of Akzo Nobel India. The acquisition aims to make JSW Paints India's fourth-largest paint company.
The operating company debt of Rs3,300 crore is being raised through a syndicate of foreign lenders, including SMBC, MUFG, Mizuho, Barclays, JPMorgan and DBS, sources said. The loan is priced at 10% plus withholding tax.
Another Rs3,000 crore is being raised via a loan against shares from domestic mutual funds, including Kotak Mutual Fund structured at an interest rate of around 8.5%, said one of the people cited above. This tranche is backed by the shares of a listed group company, helping bridge the funding requirement at the promoter level.
An Additional fundraise of Rs3,000 crore is through convertibles at the holding company level from private credit funds.
The operating company debt is being raised by JSW Paints, while the convertibles are at the JSW Group level. The equity portion is raised by the promoter group. JSW is looking to raise Rs4,000- crore debt to fund the acquisition through foreign banks and private credit funds.
Earlier, JSW Infrastructure's promoters, specifically the Sajjan Jindal Family Trust, had raised Rs1,210 crore by selling a 2% stake in the company to comply with Sebi's minimum public shareholding (MPS) norms, which could also help in funding this transaction.
