Indian private equity firm Multiples Alternate Asset Management has secured INR5bn (~$58m) in private debt financing from HSBC and Nomura to support its acquisition of a majority stake in digital engineering platform QBurst Software Services, according to a report by Bloomberg.
The debt has been structured as listed non-convertible debentures (NCDs), a common financing instrument in India’s private credit market. The five-year instruments carry an 11.4% coupon and are listed on the Bombay Stock Exchange to comply with regulatory requirements, according to sources familiar with the matter.
The deal underscores growing appetite among global banks to expand their footprint in the $1.7tn private credit space. HSBC is consolidating its capital markets and advisory operations to bolster its private credit platform, while Standard Chartered is building out a new private markets team, Bloomberg reported earlier.
Multiples announced the QBurst transaction in February, marking its largest control investment in the technology services sector to date. The firm, alongside co-investors, is investing over $200m to acquire the stake.
