Barclays to anchor Hinduja's ₹4,300 crore bond for Reliance Capital acquisition
Subscribe to enjoy similar stories. The Hinduja Group is ramping up its efforts to acquire bankrupt Reliance Capital, with Barclays Capital taking the lead in the second tranche of a high-yield rupee bond offering, three people with knowledge of the deal said, asking to remain anonymous. The group aims to raise a total of ₹4,300 crore (approximately $515 million) to fund the acquisition, which was approved by the National Company Law Tribunal (NCLT) but has faced delays due to regulatory hurdles and funding challenges.
Barclays is underwriting ₹1,500 crore of the bond jointly with wealth manager 360One, while managing the remaining ₹2,800 crore independently, said one of the three people cited above. The global investment bank is expected to subscribe to ₹800- ₹1,000 crore of the issue before downselling to a mix of institutional investors including Allianz, Bank of America (BofA), JP Morgan, and Edelweiss’ Special Opportunities Fund. Read this | Reliance Capital lenders red-flag Hinduja’s ₹7,300 crore debt proposal Other expected participants include PAG, Varde, and Standard Chartered, this person added.
Institutional cheque sizes will likely range from $25 million to $70 million. The tranche is expected to be finalized within the next 2-3 weeks, according to the second of the three people cited above. The bond is aggressively priced at a 15% coupon rate, according to bankers.
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