India’s Slowing Economy Has Sparked Jump in Lending For LBOs

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(Bloomberg) — India’s slowing economy is sparking a wave of consolidation, creating opportunities for Asian lenders.

It’s worked like this: Banks desperate for higher yields have turned to lending for leveraged buyouts in India. The loans have supported private equity funds executing the deals.

Foreign-currency syndicated LBO loan volumes involving India have jumped to $891 million across four deals in 2019, compared with $150 million from a single transaction last year, according to data compiled by Bloomberg.

Some Highlights:

  • Baring Private Equity Asia signed a $360 million loan recently backing the purchase of a stake in NIIT Technologies
  • Blackstone (NYSE:) Group signed a $166 million LBO loan facility earlier this year for financing the acquisition of Essel Propack Ltd.

Private Equity Picks Through Rubble of India Shadow Bank Crisis

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