Piramal Said to Raise $153 Million for Four Months From Barclays
- Blended cost with fees on the 7.5% loan comes to more than 10%
- Company plans to repay the debt through a proposed share sale
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Billionaire Ajay Piramal’s shadow banking unit has borrowed 11 billion rupees ($153 million) from Barclays Plc to refinance part of its existing debt and extend new loans, according to people familiar with the development.
While the rate of interest is 7.5% on the four-month loan deal signed last week between Piramal Capital & Housing Finance Ltd. and the British bank, the blended annualized cost, including the fee, is higher than 10%, the people said, asking not to be named as the information is not public. The Indian non-bank financier has offered to repay the borrowings from the money raised from a proposed share sale, and the security cover is two times the loan value, the people said.