Aditya Birla Renewables Ltd. has secured $1.5 billion in acquisition financing from Mitsubishi UFJ Financial Group Inc. (MUFG) to fund its purchase of Shell Plc's renewable energy assets in India. Japan's largest lender solely underwrote the five-year facility via the external commercial borrowing route at an all-in cost of about 160 basis points over SOFR.

The borrower, a unit of billionaire Kumar Mangalam Birla's conglomerate, will acquire 100% of Solenergi Power Pvt. to gain control of its five-gigawatt renewable portfolio. The $1.8 billion deal will be funded through debt alongside equity from parent Grasim Industries Ltd. and Global Infrastructure Partners.

The financing highlights Japanese lenders' expanding role in large cross-border Indian acquisitions. MUFG, now Japan's most valuable firm, also backed Sun Pharmaceutical Industries Ltd.'s $12 billion acquisition financing in May and signed a pact with State Bank of India. MUFG plans to down-sell a portion post-syndication.

India's acquisition financing market is gaining momentum after the Reserve Bank of India allowed local lenders to finance up to 75% of corporate takeover values, intensifying competition with global banks and private credit funds.