Rare Equity, an equity trading firm set up by the late veteran stock market investor Rakesh Jhunjhunwala, has approached Barclays to prepay Rs 500 crore debt. The Economic Times reported on October 10, citing sources. The restructuring follows the death of the Indian billionaire. Familiarize yourself with development.

The report said that the debt was borrowed from a branch of the British banking group last year to partly finance Jhunjhunwala’s acquisition of a stake in Zydus Cadila’s animal health business.

The funding was raised by Rare Equity through a zero-coupon bond issued to a Barclays entity. Fundraising was supported by share pledges and personal guarantees from Rakesh Jhunjhunwala and his wife, Rekha.

In the absence of put or call options on debt securities, prepayment incurs fees. “Understandably, officials at Rare Enterprises will negotiate to lower any upfront fees. This may be part of an overall decision to pay down any debt and focus only on long-term investments,” another market source told ET.