(Bloomberg) -- Birla Carbon India Pvt., a closely-held unit of billionaire Kumar Mangalam Birla controlled Aditya Birla Group, is raising an offshore loan of about $1.5 billion, according to people familiar with the matter.

Proceeds from the sale will used mainly to refinance existing debt, with a smaller portion set aside to fund expansion, said the people, who declined to be identified because the discussions are private. Lenders include Axis Bank, DBS Group Holdings, First Abu Dhabi Bank, ICICI Bank, HSBC Holdings, Standard Chartered Bank and Union Bank of India.

The maker of carbon black additives, that are widely used in manufacturing tires and plastic coatings, will rank among the top five Indian borrowers raising foreign currency loans this year once the transaction concludes, data compiled by Bloomberg show. 

The planned fundraising comes against the backdrop of rapid credit growth in the fastest-expanding major economy in the world. Indian corporates have raised $19.8 billion in loans so far in 2023, the highest in four years, the data show. 

Birla Carbon didn’t immediately respond to Bloomberg’s request for comment. It is the world’s top producer and supplier of carbon black, according to the company’s website.


--With assistance from Swansy Afonso.

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