JSW Paints is likely to raise funds through bonds maturing in four and five years, with a sale expected in the next couple of weeks, two merchant bankers with direct knowledge said on Thursday. The proceeds are likely to refinance an earlier fundraise the company put towards its acquisition of Akzo Nobel India. JSW Paints did not comment to Reuters.
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JSW Paints Bond Issue: Key Details
| Parameter | Details |
| Issuer | JSW Paints |
| Reported size | About 30 billion rupees (Rs 3,000 crore), or roughly $317 million |
| Tenors | Four and five years |
| Timing | Within the next couple of weeks |
| Purpose | Refinancing Akzo Nobel India acquisition funding |
| Source | Two merchant bankers; the company has not commented |
What Is Being Refinanced
Reports link the refinancing to bonds raised in November 2025. JSW Paints sold 33 billion rupees of five-year bonds to foreign banks and investors, and holders can request repayment after one year. The securities are due for redemption on November 10, 2030, and the company’s legal adviser said some proceeds were meant to fund the purchase of Akzo Nobel India shares.
That repayment option matters. If the new bonds carry no such option, one analysis notes, the debt’s real maturity would be pushed out, and the risk of a large rollover at once would fall.
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Background: The Akzo Nobel India Deal
- JSW Paints announced a Rs 12,915 crore deal for the Dulux maker in June 2025: a 74.76% stake for Rs 8,986 crore, plus an open offer for up to Rs 3,929.06 crore.
- The deal was announced as making JSW Paints the fourth-largest player in India’s paint industry.
- Akzo Nobel put the enterprise value at about 1.4 billion euros, or roughly 22 times EBITDA.
Why Indian Companies Are Turning to Bonds for Acquisitions
Indian companies have been using the bond market to fund acquisitions in recent months, helped by robust investor demand. They raised about 8.5 trillion rupees through private placements in the first nine months of the year, including 1.43 trillion rupees in September, the highest monthly total in more than six years, according to Prime Database.
Highly rated state-run borrowers and companies financing large acquisitions are expected to carry that momentum forward, and bankers say this could be a record year for supply, barring unforeseen volatility. Bankers have also described borrowers as keen to lock in rates.
Overseas conditions are tougher. Asia-Pacific dollar bond yields had touched 6.1% by October 6, their highest since 2024, and higher borrowing costs were making it harder for companies to proceed with deals.
Higher Rates Add a Pricing Test
Borrowing costs are moving up. The RBI raised the repo rate by 25 basis points to 5.5% on October 7, its first increase since February 2023, and shifted to a “calibrated tightening” stance. Investors will also look at leverage. A 2025 rating report said JSW Paints’ external debt-to-operating profit ratio would stay above four times in the medium term.
What to Watch Next
The key things to watch are the final size and pricing of the issue, including how the cost compares with the existing bonds, and whether investors take up both the four- and five-year tranches. The response will also show whether strong demand for acquisition-linked debt can hold as rates rise and whether other acquirers follow with similar refinancing.
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