Who is providing the $1.5 billion acquisition financing for Aditya Birla’s purchase of Shell’s Indian renewable assets, and what are the key terms of the loan?

Mitsubishi UFJ Financial Group Inc. (MUFG), Japan’s largest lender, is solely underwriting the $1.5 billion facility for Aditya Birla Renewables Ltd. to acquire Shell Plc’s renewable energy assets in India. The loan is structured as an external commercial borrowing with a five-year tenor and priced at an all-in cost of approximately 160 basis points over the Secured Overnight Financing Rate (SOFR), covering both lending margins and bank fees.

What is the strategic significance of MUFG’s involvement in this deal, and how does it reflect broader trends in India’s acquisition financing market?

MUFG’s sole underwriting underscores its growing role as a key financier of large cross-border acquisitions involving Indian companies, capitalizing on robust deal activity and rising demand for offshore funding. This aligns with a broader trend where Japanese lenders are gaining edge in India’s M&A finance space — exemplified by MUFG’s prior involvement in Sun Pharma’s $12 billion acquisition financing and its pact with State Bank of India — amid regulatory changes like the Reserve Bank of India’s recent move allowing local lenders to finance up to 75% of acquisition values, intensifying competition with foreign lenders and private credit funds.

Aditya Birla Secures $1.5 Billion from MUFG for Shell Renewable Asset Acquisition

Jul 14, 2026

Aditya Birla Renewables secured $1.5 billion in financing from MUFG to acquire Shell Plc's renewable energy assets in India. The deal underscores increasing Japanese lender participation in large-scale Indian energy acquisitions.

bloomberg

2026-07-14

Aditya Birla Secures $1.5 Billion from MUFG for Shell Renewable Asset Acquisition

Aditya Birla Secures $1.5 Billion from MUFG for Shell Renewable Asset Acquisition

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