Head of KKR India Credit Quits
Sanjay Nayar, who heads KKR’s India unit, will also manage the lending business in the interim.
(Bloomberg) -- The head of KKR & Co.’s lending business in India resigned on Thursday, highlighting that even global players are finding it difficult to do business in the nation’s credit markets as more companies default.
More than half of KKR India Financial Services Pvt.’s loan book of 59 billion rupees ($831 million) is in moratorium, meaning that borrowers aren’t fully complying with the original terms of the debt agreements, ratings firm Crisil Ltd. said this month, when it downgraded the financier’s long term debt to AA. KKR was one of the first global private equity firms to set up business in the nation and isn’t the only one to face the heat.
India’s debt market has been in a prolonged freeze after a string of shadow financiers from the IL&FS group to Altico India Capital Ltd. defaulted in the last 15 months. The companies that delayed or missed debt payments in 2019 still have $17 billion worth of notes and loans outstanding, including the defaulted securities, according to data compiled by Bloomberg.
“BV Krishnan has played an important role in helping us build a great franchise, and we wish him the best in his future endeavors,” KKR said in a statement, declining to comment on the reason for Krishnan’s departure. “KKR remains committed to the Indian market for the long-term and we continue to recognize the important role KKR India Financial Services plays.”
Sanjay Nayar, country head, KKR India, has been appointed CEO of KIFS, effective immediately, to ensure a seamless transition, according to KKR on Thursday.
Risks of contagion are rising in India’s non-bank finance sector, S&P Global Ratings said in a note this week, adding any failure of a large shadow lender could lead to a solvency shock at banks.
To contact the reporters on this story: Anto Antony in Mumbai at aantony1@bloomberg.net;Divya Patil in Mumbai at dpatil7@bloomberg.net
To contact the editors responsible for this story: Arijit Ghosh at aghosh@bloomberg.net, ;Andrew Monahan at amonahan@bloomberg.net, Jeanette Rodrigues, Unni Krishnan
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