Anil Ambani’s debt-ridden Reliance Capital secured a buyout offer of £965 mn from Hinduja Group’s IndusInd International Holdings Limited (IIHL) a few months ago. Hinduja Group’s firm has already received clearance from SEBI, CCI, IRDAI and RBI, and it is now rushing to secure over £700 mn loan before the May 27 deadline set by a bankruptcy court to close the deal. According to a report, IIHL is looking to borrow £750 mn. However it is facing pricing challenges with various credit funds as they are demanding higher rates.
The report reveals that lenders including Barclays and Standard Chartered Bank are demanding 15.5% coupon on a £200 mn loan each. The Hinduja Group is now racing against time to negotiate for a reduction in coupon and close the deal by the weekend. IIHL is seeking a cheaper loan through ongoing discussions with the lenders, according to a source.
As per the report, a non-banking finance company 360 One Prime is offering £250 mn at a rate of over 15%. The National Company Law Tribunal on February 27, 2024, approved IIHL's £965 mn resolution plan for Reliance Capital.
In November 2021, the Reserve Bank superseded the board of Reliance Capital on governance issues and payment defaults by the Anil Dhirubhai Ambani Group company. The central bank had appointed Nageswara Rao Y as the administrator, who invited bids in February 2022 to take over the company.
