Mumbai, Jan. 9 -- Subhash Chandra-promoted Essel Group is in talks with investors to raise as much as $400 million in a structured credit transaction, two people directly aware of the development said, requesting anonymity. The group will raise funds to refinance a part of the promoter debt which will mature over the next few quarters, they added.

"Discussions are currently underway with potential lenders, including AION Capital and KKR," said the first person. "The funds will be used to refinance debt of the group's Mauritius holding company, which has investments across multiple businesses."

Structured credit transactions typically offer flexible repayment terms compared with bank loans and are often tapped into by borrowers to tide ove...