State Bank of India (SBI) is set to commit up to $1 billion to support Sun Pharmaceutical Industries Ltd.’s $12 billion acquisition of US-listed Organon & Co., according to livemint.com. The proposal is awaiting SBI board approval and would position the bank alongside global lenders backing the deal.
The funding plan involves SBI joining a syndicate of major international banks including Citigroup Inc., JPMorgan Chase & Co., and Mitsubishi UFJ Financial Group Inc. These institutions are providing debt financing for Sun Pharma’s overseas purchase of Organon, which was agreed upon in April. The involvement of SBI, India’s largest bank by assets, marks a significant addition to the consortium.
Sun Pharma’s acquisition of Organon represents one of the largest overseas deals by an Indian pharmaceutical company, highlighting the growing scale of cross-border transactions in the sector. The participation of SBI and other global lenders underscores the increasing integration of Indian banks in international financing for large-scale pharma deals, reflecting broader trends in the industry’s expansion.
SBI’s asset base exceeds ₹61 trillion, making it the country’s largest banking institution. The bank’s board is expected to review and approve the $1 billion funding proposal shortly, which will solidify its role in financing Sun Pharma’s strategic acquisition of Organon.