Home / Business and Economy / Aditya Birla Eyes ₹14,000 Cr Loan for Shell's India Unit
Aditya Birla Eyes ₹14,000 Cr Loan for Shell's India Unit
24 Aug
Summary
- Aditya Birla Group seeks ₹14,000 crore loan for Sprng Energy acquisition.
- Axis Bank underwrites entire amount, likely taking ₹5,000 crore.
- Loan priced below 8% at approximately 7.7% with a 20-year tenor.
Aditya Birla Group is advancing discussions with domestic lenders to secure a significant ₹14,000 crore long-term loan. This financing is intended to facilitate the acquisition of Shell's Indian renewable energy business, Sprng Energy, valued at ₹17,200 crore.
Axis Bank has committed to underwriting the entire loan amount, with an expected retention of around ₹5,000 crore. State Bank of India and HDFC Bank are reportedly evaluating their potential contributions to the remaining sum. The group aims to finalize this debt facility with a limited number of lenders, ideally two or three.
The proposed loan is structured as a domestic lending syndication and is expected to carry a tenor of up to 20 years. Pricing discussions are centering around 7.7%, which is below the 8% mark. This strategy allows Aditya Birla to fund the acquisition with cost-effective, long-duration domestic debt.
The acquisition will significantly bolster Aditya Birla's renewable energy portfolio, adding approximately 5 GWp of capacity, including 3.3 GWp operational and 1.7 GWp under construction. The deal's enterprise value stands at ₹17,200 crore, with the final equity payment subject to adjustments.
