Besides these two lenders, the up to 42-month facility was underwritten by Axis Bank, DBS Bank and Far Eastern International Bank. About half the principal raised will be repaid as a bullet payment at maturity.
The loan was priced at around the secured overnight financing rate+175 basis points, excluding fees, said people close to the development. One basis point is a hundredth of a percentage point.
“The strong participation from global and domestic investors reflects confidence in Piramal Finance’s strategy and execution,” said Jairam Sridharan, MD, Piramal Finance. “This transaction supports our approach to diversifying funding sources while ensuring cost-effective capital.”
He said the overseas markets would continue to feature prominently as a financing source as Piramal expands deeper into India’s hinterland, where demand for formal cre dit is surging. “Over the next 2-3 years, we expect 18-20% of our borrowings from international markets, offering global investors exposure to India’s growth,” Sridharan said.
The deal was fully underwritten earlier this week and is expected to be launched for syndication shortly. Most lenders came through GIFT city while Axis Bank participated through its Dubai International Financial Centre unit and Far Eastern International Bank joined through an offshore hub, the sources said.
“The success of this transaction highlights the depth of international demand for Indian NBFC credit and underscores the rising importance of GIFT City,” said Apoorv Madhup, MD and head of India financing at Deutsche Bank Group.