Piramal Capital to Raise $500 Million Loan with Apollo Global

Piramal Capital & Housing Finance Ltd, a wholly-owned subsidiary of Piramal Enterprises, is reportedly in final stages of discussions with global alternative asset manager Apollo Global Management to raise over $500 million (about Rs 3,700 core). Once the deal materialises, it will be one of the largest debt transaction in home finance/non-banking finance this year. The company will secure funds by pledging a portion of its developers’ loan portfolio, and the select portfolio of loans to be offered to the New York-based private equity firm has already been created. This financing will be availed at coupon rate of 16-17% per annum, while the loans being used as collateral have higher returns supported by mortgages agreed upon with the developer at the time of sanction. Apollo, which manages about $316 billion of assets globally, will get a choice to pick and select Piramal's loans.