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Baring Private Equity Asia set to raise up to $700 million through debt

Baring Private Equity Asia is understood to be raising around $650-700 million through a syndicated debt facility to fund its two recent investments in India in what could be a continuation of sponsor financing trend in India.

Baring, which holds the credit for one of the early syndicated acquisition financing for a private equity fund when it bought technology firm Hexaware in 2013, is in talks with a group of banks including Nomura, MUFG, Investec, Barclays, Deutsche Bank and JP Morgan, three people with knowledge of the development told ET.

ANZ, ING and HSBC are also among the banks that are understood to be in the consortium to facilitate the financing arrangement.

The debt facility will be of up to five years and are likely to be priced 430-450 bps over Secured Overnight Funding Rate.

“The terms are getting nearly finalised,” said a person close to the negotiations. “Baring looks to keep the cost of these equity financing at a lower level to maximise their returns. They have been doing this sponsor financing for almost every controlling deal that they enter into. Recently, most of the big ticket PE firms are doing this,” the person said.

When contacted, Baring PE Asia spokesperson declined to comment.

Nomura, MUFG, INvesteck, Barclays, Deutsche Bank, JP Morgan, ANZ, ING and HSBC did not respond to emailed queries till press time Wednesday.

The fundraising is to finance Baring’s acquisitions of IGT Global Solutions from Apollo Global and Asian back office firm Straive from Partners group.

In February, ET had reported that Baring is set to buy a controlling stake in IGT Global Solutions in a deal valued around $800 million. In August last year, Baring signed a definitive agreement to buy SPi Global or Straive for around $1 billion.

In 2021, BPEA had bought out the healthcare services vertical of Hinduja Global Solutions for an enterprise value of Rs 9,000 crore ($1.2 billion).

Last year, the Asia-focused PE firm sold the company to Carlyle Group for a whopping $3 billion.

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