Jhunjhunwala's firm Rare in talks with Barclays to prepay Rs 500 crore loan

The loan was used to fund the acquisition of Zydus Cadila's animal healthcare business in 2021

Late Rakesh Jhunjhunwala's Rare Equity Pvt Ltd (REPL) has reportedly approached Barclays with a proposal to repay a loan of Rs 500 crore. The loan was taken in 2021, according to a report by Economic Times (ET). 

The loan was used to fund the acquisition of Zydus Cadila's animal healthcare business. It was raised using zero-coupon bonds. 

Rare issued non-convertible debentures to Barclays in two tranches. It gave returns of 7.75 per cent to the British bank. 

"It was an unusual offering," a bond trader told ET. "Before that, I don't recall Jhunjhunwala having ever borrowed from the bond market.