According to bankers, the Indian pharma major plans to raise around $10 billion from various sources, while the remaining will be funded through internal accruals.
While discussions are at an early stage, one option under consideration is raising Eurobonds through a European entity of Organon, as this route offers tax benefits. The Eurobond market is one of the largest debt markets in the world, by which issuers can raise capital in over 50 currencies. These bonds are issued in a currency different from that of the country where they are sold.
The transaction is expected to close in early 2027, as the approvals, including the go-ahead from Organon stockholders, are expected by then. “Disbursement will take place after all the approvals,” said a source. Another option being considered is seeking consent from Organon bondholders to swap their holdings with Sun Pharma bonds.
Under this arrangement, investors will get a certain number of Sun Pharma bonds in exchange for every Organon bond. This will translate into higher rating for such bonds. Sun Pharma has the highest credit ratings, as it is rated AAA by leading rating agencies like Crisil and Icra.
Discussions are also underway for offshore bank loans of $3 billion to $4 billion to fund the deal, sources said.
According to HDFC Securities, Sun Pharma was a net cash company with $3.2 billion on its books as of December 2025. “This robust liquidity serves as the foundation for the $11.75 billion deal, as the company plans to deploy $2 billion-$2.5 billion of these internal accruals to fund the equity portion of the transaction,” the brokerage said.
An email sent to Sun Pharma seeking details of the funding options under consideration remained unanswered.
Prabhudas Lilladher has indicated that the deal would be funded through $2 billion to $2.5 billion of equity or internal accruals and $9.25 billion to $9.75 billion of debt. Organon has $574 million in cash and further $400 million from proceeds related to a product divestment.
Citigroup Global Markets Asia, JPMorgan Chase Bank, and MUFG Bank are serving as financing banks to Sun Pharma.
The deal will enable Sun Pharma to be among the top 25 global pharmaceutical companies, with combined revenue of $12.4 billion.
Sun Pharma is positioning the proposed acquisition of Organon as a platform-led expansion to deepen its global footprint and build a scalable in-licensing engine. The company plans to leverage Organon’s commercial presence across 140 markets to accelerate growth and improve long-term efficiencies.
Post-acquisition, Sun Pharma’s geographic mix is expected to become more balanced globally.
Organon’s portfolio has been growing at 1-2 per cent annually. Sun Pharma’s strategy, as outlined by its management, is to build on this portfolio by leveraging the combined platform to expand reach and drive incremental growth, rather than relying solely on existing momentum.
The company sees “significant upside” by “enhancing patient access across geographies using the portfolio of Sun Pharma or Organon and by “cross-pollinating and launching products which could be of meaning to the end patients”. It also aims to position the combined entity as a “preferred partner of choice” for in-licensing new products.
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Citigroup Global Markets Asia, JPMorgan Chase and MUFG are financing the deal -
After the deal, Sun will be among top 25 global pharma firms with $12.4 bn revenue -
Sun Pharma may deploy around $2 bn from internal accruals -
Offshore bank loans of $3 billion to $4 billion envisaged for the deal
