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BPEA EQT, ChrysCapital agree $1.1bn deal for HDFC’s education loan arm

BPEA EQT and ChrysCapital are to acquire a 90% stake in HDFC Credila, Housing Development Finance Corporation’s education finance arm for $1.11 billion, in what will be India’s largest-ever financial services sector private equity buyout, according to a report by Reuters.

BPEA EQT and ChrysCapital are to acquire a 90% stake in HDFC Credila, Housing Development Finance Corporation’s (HDFC) education finance arm, for $1.11 billion, in what will be India’s largest-ever financial services sector private equity buyout, according to a report by Reuters.

As well as the purchase price, the PE firms have also agreed to inject around $250 million into the business. 

The deal fits with an Indian central bank regulatory requirement for HDFC to reduce its holding in HDFC Credalia to 10% within two years of the effective date of its $40 billion merger with HDFC Bank which is expected to complete next month. Post closing, HDFC will retain a 9.99% share in the business.

Jefferies acted as the exclusive financial advisor to HDFC and HDFC Credila on the deal, which is subject to regulatory approvals from the RBI and the Competition Commission of India.

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