Indian drugmaker Gujarat Themis Biosyn Ltd. has obtained private credit funding to back its purchase of Japanese peer MicroBiopharm Japan Co., highlighting the growing use of such debt for overseas expansion in Asia.
Gujarat Themis received ¥9.2 billion ($58 million) of financing from Asian private credit fund Orion Capital Asia to back the buyout, according to people familiar with the matter who asked not to be identified discussing non-public information. Gujarat Themis announced the ¥21.5 billion purchase in May.
A spokesperson for Gujarat Themis wasn’t immediately able to comment, while a representative of Orion declined to comment.
Asian companies are increasingly turning to private credit to fund their overseas growth, as such lenders often provide quicker financing than traditional banks. Indonesian petrochemicals producer PT Chandra Asri Pacific Tbk tapped KKR & Co’s insurance business Global Atlantic to fund its $1 billion acquisition of Esso-branded service stations in Singapore from Exxon Mobil Corp earlier this year.
Besides tapping the Orion facility, Gujarat Themis also raised 5.85 billion rupees ($61 million) through a private placement of secured five-year debentures with a coupon of 10% and 18-month notes paying 17.75%, according to a Sept. 16 company statement. The proceeds will be used to invest in Gujarat Themis’ wholly owned Japanese subsidiary to finance the acquisition, as well as for general corporate purposes, according to the statement.
Indian private credit funds managed by Avendus Capital and Edelweiss Alternatives purchased the rupee debt, according to the people. A spokesperson for Avendus Capital said the fund was a lead investor in the debt, while Edelweiss Alternatives didn’t immediately respond to a request for comment.
Founded in 1981, Gujarat Themis is India’s first company to start commercial production of the anti-tuberculosis drug Rifampicin, according to its website.
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