Aditya Birla Group is seeking to raise INR 140bn ($1.5bn) from local lenders to fund its acquisition of Sprng Energy from Shell Plc, according to 9fin sources.
Axis Bank has committed INR 70bn, while Aditya Birla is in advanced discussions with State Bank of India and HDFC Bank for the remaining financing, the sources said. SBI is evaluating a similar INR 70bn commitment, the sources added.
Aditya Birla has also held talks with six to seven other domestic lenders but would prefer to complete the financing with two banks providing INR 70bn each, or with a maximum of three lenders, the sources said.
The proposed loan will be secured against Sprng Energy’s renewable power assets and is expected to have a tenor of 15 to 20 years. Pricing is being discussed at around 7.5%-7.7%, the sources said. The structure is aimed at securing cheaper, longer-duration financing, instead of opting for bridge loans.
The conglomerate, controlled by billionaire Kumar Mangalam Birla earlier lined up around $1.5bn in acquisition financing from MUFG in the form of a five-year foreign-currency loan priced at SOFR+160bps, according to media reports. However, the group is now prioritizing a project asset-backed local currency facility given...
