New Delhi: Be it UK giant Vodafone taking over Hutch-Essar or domestic conglomerate Tatas acquiring London-based Corus, capital is no issue for either -- over a dozen banks have lined up with a kitty of about $ 11.5 billion (Rs48,438crore) to fund the two mega deals.
After clinching a deal to acquire control of mobile venture Hutch-Essar in India’s biggest inbound takeover transaction, Vodafone is seeking to part fund its 11.1 billion dollar cash bid with a debt facility of $ 3.5 billion.
Besides, Tatas are also seeking to inject about eight billion dollar capital raised through debt for its over $ 12 billion acquisition of Anglo-Dutch steel giant Corus -- which is the biggest ever overseas takeover by an Indian entity.
According to the investment banking sources, mandate has been given to BNP Paribas, Lloyds TSB, Royal Bank of Scotland (RBS), Banco Santander and UBS to arrange $ 3.5 billion credit facility for Vodafone towards the Hutch-Essar deal.
At the same time, a number of domestic banks -- including ICICI Bank, Bank of Baroda, Bank of India and Export-Import Bank of India -- are in talks with Credit Suisse, ABN AMRO and Deutsche Bank, the investment bankers and financial advisors of Tata Steel, to finance the debt portion of Corus deal, sources said.
Besides, Standard Chartered Bank and State Bank of India are also believed to have evinced interest in part-funding the debt portion of Tata Steel’s bid for Corus.
Tata Steel, which had outbid Brazil’s CSN in a nine-round auction held on January 30 to bag the Corus deal, is likely to announce its detailed funding arrangement later this month.