JSW Secures ₹9,300-Crore Financing Package for Akzo Nobel Acquisition

JSW Group has finalized a ₹9,300-crore funding arrangement to support its planned acquisition of Akzo Nobel India, marking one of the biggest transactions in India’s paints sector. The financing is spread across three levels—debt at the operating company, funding backed by promoter-held shares, and convertible instruments at the holding company—according to people familiar with the deal.

This funding plan follows JSW Paints’ announcement on June 27 of a ₹12,915-crore agreement to acquire the Indian operations of Dutch paints and coatings major Akzo Nobel. The deal is expected to help JSW Paints strengthen its position in the domestic market and become India’s fourth-largest paint company by revenue.

The ₹9,300-crore package includes ₹3,300 crore in operating company debt being raised by JSW Paints from a group of foreign lenders. These lenders reportedly include SMBC, MUFG, Mizuho Bank, Barclays, JPMorgan, and DBS, and the loan is priced around 10% plus withholding tax. Another ₹3,000 crore is being raised through convertible instruments by private credit funds at the holding company level. The final ₹3,000 crore is coming from a loan against promoter-held shares, backed by equity of a listed JSW group company. This tranche, being raised from domestic mutual funds like Kotak Mutual Fund, is structured with an interest rate of around 8.5%.

Separately, JSW Infrastructure’s promoter entity, the Sajjan Jindal Family Trust, recently raised ₹1,210 crore by selling a 2% stake in JSW Infrastructure. While this move was undertaken to comply with SEBI’s minimum public shareholding norms, it is also expected to support the overall financing requirement of the Akzo Nobel acquisition.

The acquisition is a key part of JSW Paints’ strategy to scale up its presence in both the decorative and industrial coatings market. The Indian paint industry is largely dominated by a few major players such as Asian Paints, Berger Paints, Kansai Nerolac, and Akzo Nobel India. JSW Paints, which began operations in 2019, has been aiming for rapid growth through expansion of its product range and distribution reach. The company has announced manufacturing investments in Karnataka and Maharashtra to support this strategy.

Through the acquisition of Akzo Nobel India, JSW gains access to an established brand portfolio, a wide dealer network, and production facilities. The deal also includes Akzo’s industrial coatings business, which serves segments like automotive, construction, and marine industries. This will complement JSW’s efforts to diversify and grow in high-demand categories linked to infrastructure and urban development.

Analysts believe the multi-layered funding structure demonstrates a capital-efficient approach. By using convertible debt and promoter-level funding backed by shares, JSW is aiming to preserve operational flexibility and manage group-level leverage more effectively. This approach could also help delay equity dilution until a more favorable time.

The transaction is subject to regulatory approvals and customary conditions. If completed, it would significantly reshape competition in India’s paints market and mark a major milestone in JSW Paints’ growth journey.