India’s largest drugmaker by market capitalisation plans to raise around Rs 10,000 crore through domestic bonds to partly repay the bridge loan used to fund its $11.75 billion acquisition of Organon.
Sun Pharmaceutical Industries is planning to raise around Rs 10,000 crore ($1.04 billion) through a rupee-denominated debt sale to partly refinance a bridge loan taken to fund its acquisition of US healthcare company Organon & Co., three sources familiar with the matter told Reuters.
The proposed bond sale comes after Sun Pharma earlier this year closed syndication of a nearly $12 billion, 18-month bridge loan for the all-cash acquisition of Organon. State Bank of India was among the lenders participating in the financing, the sources said.
The sources, who requested anonymity as they were not authorised to speak to the media, said Sun Pharma plans to issue bonds with maturities of two, three and four years.
The planned fundraising comes as Indian companies increasingly turn to the domestic debt market as higher US Treasury yields make dollar-denominated borrowing more expensive.
The 10-year US Treasury yield is hovering near its highest level since June 2007, putting pressure on borrowing costs globally.
Bankers expect domestic corporate debt issuance in India to reach a record level this year as companies seek to lock in funding costs ahead of a potential interest-rate increase by the Reserve Bank of India.
More from BusinessAround $3 billion worth of rupee-denominated corporate debt issues are lined up over the next few days, one of the sources told Reuters.
