Goldman funds $600-mn equity for Coke unit sale

GOLDMAN SACHS ASSET Management has provided $600 million to partially fund the equity investment needed by Jubilant Bhartia Group for its purchase of a 40% stake in The Coca-Cola Co.'s bottling unit in India, according to people familiar with the matter.

- MEGAWATI WIJAYA & PR SANJAI

Goldman Sachs Asset Management's hybrid fund financed this equity portion by subscribing to the convertible preference shares issued by the group, said the people, who asked not to be named.

The fund — which is part of the investment bank's private credit strategy — sits between traditional debt and equity, and is usually longer in tenure.

Convertible preference shares is one of the many ways companies can raise capital to fund their operations and expansion.