In the words of people familiar with the matter, Birla Carbon India Pvt, a closely held unit of billionaire Kumar Mangalam Birla's Aditya Birla Group, is raising an offshore loan of about $1.5 billion.
According to the people who declined to be identified because the discussions are private, the proceeds from the sale will be used primarily to refinance existing debt, with a smaller portion set aside to fund expansion. Axis Bank, DBS Group Holdings, First Abu Dhabi Bank, ICICI Bank, HSBC Holdings, Standard Chartered Bank, and Union Bank of India are among the lenders.
As per the data compiled by Bloomberg, the manufacturer of carbon black additives, which are widely used in tyre manufacturing and plastic coatings, will be among the top five Indian borrowers raising foreign currency loans this year once the transaction is completed.
The planned fundraising comes against the backdrop of rapid credit growth in the world's fastest-growing major economy. According to the data, Indian corporations have raised $19.8 billion in loans so far in 2023, the most in four years.
Birla Carbon did not respond immediately to a request for comment. According to the company's website, it is the world's leading producer and supplier of carbon black.
