Four PE funds in talks to raise over $1 billion for India buys

Global private equity funds Partners Group, CVC Capital, Blackstone and Barings are in talks to raise more than $1 billion in total in syndicated loans primarily to fund their targeted acquisitions in India, multiple people with knowledge of the matter told ET.

All the four PEs are at various stages of finalising five-year offshore syndicated loans, the sources said.

The development sets the stage for a record mop-up for buyout financing in India in 2022, building on an unprecedented alternate capital investment flow into Indian companies last year when total PE inflows touched a new high of $63 billion.

ANZ, Barclays, Citigroup, Credit Suisse, Deutsche Bank, HSBC, ING, Investec, Nomura and Standard Chartered Bank are some of the banks involved in the syndication facilities to help the funds to raise capital, sources said.

Individual banks could not be contacted immediately for comments. Blackstone, Baring and Partners Group declined to comment. CVC did not immediately respond to mails till press time Wednesday.

The five-year loan may be priced at 436-446 basis points over Secured Overnight Funding Rate (SOFR), a new global benchmark, they said.

CVC - which recently signed a definitive agreement to acquire Sajjan Chemicals for about $1 billion - is raising around $330 million in a five-year syndicated facility.

Japanese bank Nomura, ANZ, Barclays, Citigroup, Credit Suisse, Deutsche Bank, HSBC, ING, Investec and Standard Chartered Bank are some of the banks involved in the syndication facilities to help the funds to raise capital, sources said. Individual banks could not be contacted immediately for comments. Blackstone, Baring and Partners Group declined to comment. CVC did not immediately respond to mails till press time Wednesday.