Indian pharmaceutical manufacturer Gujarat Themis Biosyn Ltd. has secured private credit financing to support the purchase of Japanese counterpart MicroBiopharm Japan Co., demonstrating the growing use of such debt for overseas expansion in Asia.
Gujarat Themis received funding of 9.2 billion yen, equivalent to $58 million, from the Asian private credit fund Orion Capital Asia to facilitate this acquisition. The company announced the purchase of 21.5 billion yen in May.
A representative from Gujarat Themis was unable to comment immediately, while a representative from Orion declined to comment.
Asian corporations are increasingly turning to private credit to finance their international growth, as such lenders often provide funds faster than traditional banks. For instance, Indonesian petrochemical producer PT Chandra Asri Pacific Tbk used the insurance arm of KKR & Co, Global Atlantic, to finance the acquisition of Esso service stations in Singapore from Exxon Mobil Corp earlier this year.
In addition to securing funds from Orion, Gujarat Themis also raised 585 crore rupees ($61 million) through a private placement of five-year bonds with a 10% coupon and 18-month notes with a 17.75% yield, according to a company statement dated September 16. These funds will be directed towards investments in a wholly-owned Japanese subsidiary of Gujarat Themis to finance the acquisition, as well as general corporate needs.
The rupee debt was acquired by Indian private credit funds managed by Avendus Capital and Edelweiss Alternatives. A representative from Avendus Capital stated that the fund acted as the lead investor in this debt, while Edelweiss Alternatives did not respond to requests for comment.
It is worth noting that Gujarat Themis was founded in 1981 and is the first company in India to begin commercial production of the anti-tuberculosis drug Rifampicin, according to information on its website.
