Fri Sep 20 07:44:30 UTC 2024: ## Hinduja Group Secures $515 Million in Bonds for Reliance Capital Acquisition

**Mumbai, India -** The Hinduja Group is on track to complete its acquisition of bankrupt Reliance Capital, securing a significant $515 million in debt financing through a high-yield bond issuance. Barclays Capital is leading the fundraising effort, with the group aiming to raise a total of $873 million to complete the transaction.

The bond issuance, the second tranche of the funding process, comes with an aggressive 15% coupon rate, attracting investors despite potential risks. The Hinduja Group, through its offshore entity IndusInd International Holdings Ltd, will be issuing the bonds, with assets worth ₹2,500 crore in unencumbered IndusInd Bank shares serving as collateral.

The acquisition, approved by the National Company Law Tribunal (NCLT), has been delayed due to regulatory hurdles and funding challenges. Regulatory approvals from the Reserve Bank of India, the Insurance Regulatory and Development Authority of India, and the Department of Industrial Policy and Promotion are still pending.

Barclays is underwriting a portion of the bond issuance and is expected to offload the remaining amount to institutional investors, including Allianz, Bank of America, JP Morgan, and Edelweiss’ Special Opportunities Fund. Other investors are expected to include PAG, Varde, and Standard Chartered.

While the deal bears resemblance to last year’s Shapoorji Pallonji Group bond issuance, which faced coupon payment difficulties, the Hinduja Group is confident of closing the deal, relying on the value of IndusInd Bank shares as collateral.

The acquisition of Reliance Capital, including its two insurance subsidiaries, comes with a significant upfront payment of ₹9,650 crore. Despite securing NCLT approval, the Hinduja Group has faced delays in securing funding and regulatory approvals, missing the initial deadline.

Lenders have petitioned the National Company Law Appellate Tribunal seeking a 16.6% interest payout on the delayed payment, with the court urging regulators to expedite approvals to finalize the acquisition.

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