Sun Pharma plans $1 billion rupee bond to replace Organon deal loan

By Vivian Lin · September 30, 2026, 12:33 PM · 2 mins read

Sun Pharmaceutical Industries is lining up a 100 billion rupee bond sale to pay down its bridge loan for the Organon & Co. buyout. Rising US yields are pushing Indian firms like Sun Pharma to borrow at home.

Sun Pharmaceutical Industries is preparing to raise 100 billion rupees—over $1 billion—by selling rupee bonds. The company wants to pay off part of the bridge loan it used to buy US healthcare firm Organon & Co. Three sources confirmed the plan. Sun Pharma is shifting strategy as global borrowing costs jump. Indian companies are now looking for cheaper local funding.

The pressure is real. Earlier this year, Sun Pharma closed syndication on an 18-month bridge loan worth nearly $12 billion. This short-term loan helped speed up the Organon deal. State Bank of India, the country’s biggest lender, joined the syndicate, according to the same sources. Sun Pharma has not commented on the plan.

Independent reports confirm that Sun Pharma's planned rupee bond sale is expected to be one of the largest local currency debt issuances by an Indian pharmaceutical company in recent years.

Bridge loans like Sun Pharma’s are common in big takeovers. They give companies quick cash but must be replaced fast with longer, cheaper debt. The 10-year US Treasury yield is now at its highest since mid-2007. Dollar loans have become too expensive. Indian firms are turning to domestic markets for money.

Sun Pharma will offer bonds with two, three, and four-year maturities. The company wants to lock in rates before the Reserve Bank of India raises them. A Reuters financial review says this move should cut funding costs compared to dollar debt. Other Indian companies are doing the same.

This is not just about refinancing. Sun Pharma’s ability to raise local funds at this scale could set a new standard for Indian multinationals. US yields are squeezing global borrowers. The shift to rupee bonds is a test for India’s financial markets. If Sun Pharma succeeds, it will show that India’s capital markets can handle the needs of its biggest companies. The trend is clear.

Independent coverage by NDTV Profit and Firstpost reiterates that Sun Pharma has not issued an official statement regarding the planned bond sale, and the company has so far declined to comment on the refinancing process.

NDTV Profit

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Vivian Lin

Vivian Lin is Biotech Markets & Transactions Editor at GenoMethods, covering licensing agreements, M&A, biotech financing, company pipelines, strategic partnerships and cross-border transactions. Her reporting connects deal structure and company strategy with the scientific and clinical evidence underlying each biotechnology asset.