Bharti-Warburg joint venture to raise $450 million debt for Haier stake buyout, sources say

MUMBAI -A joint venture between Bharti Enterprises and private equity firm Warburg Pincus is looking to raise 40 billion rupees ($451 million) through the sale of bonds in the next quarter, three sources aware of the matter said on Thursday.

The Bharti-Warburg joint entity will likely offer a coupon of 11%-12%, and is expected to attract demand from large mutual funds as well as non-banking financial companies (NBFCs), the sources said.

Kotak Investment Bank is the arranger for the deal, they said.


The sources requested anonymity as they are not authorised to speak to media. Bharti Enterprises, Warburg Pincus, Haier and Kotak Mahindra Bank did not immediately respond to Reuters emails seeking comment.

In July, local media reported that the duo jointly bid $720 million for a 49% stake in the Indian arm of Haier, a Chinese electronics maker.

The bond issue adds to a rising trend of firms tapping the corporate bond market for funding large acquisitions.

Foreign lenders and credit funds have typically dominated this type of financing.

Earlier in the day, Reuters reported that JSW Group plans to raise 70 billion rupees through the issuance of zero-coupon bonds before the end of September to finance an acquisition.