<b>Tata-Corus</b>: Funding the $12 billion buy

Funding the big-ticket Corus buy is going to be a cake-walk for the Tata Group.

The financing is being done in a debt:equity ratio of nearly 2:1 i.e debt of nearly $8 billion, and equity infusion of nearly $4.1 billion by the Tata Group.

CSFB, which is the banker of Corus, has stepped in the form of staple financing to help the Tata group raising funds for the acquisition of Corus.

Said a source close to the development : "Corus had put in a word with the Tata management to take the service of CSFB, if required, for funding the acqusition since it is already their banker. So, CSFB will now fund 45% of the debt component of the deal. The remaining 55 per cent will be equally organised by Deutsche Bank and ABN Amro."

Standard Chartered Bank, which had agreed to provide $375.24 million subordinated debt financing for the acquisition, has agreed to step up funding by another $1 billion.

There are a couple of other banks, too, that will bank-roll the biggest acquisition in the history of India Inc.