KKR is seeking a $500m loan to support its acquisition of a majority stake in XCL Education, according to a Bloomberg report.

The proposed five-year facility is expected to carry an interest margin of approximately 300 basis points above the Secured Overnight Financing Rate. Banks including BNP Paribas, DBS Bank, HSBC, ING, and Standard Chartered are leading the financing. 

KKR secured the investment after outbidding other firms for the stake previously held by TPG in a deal valuing XCL Education at approximately $1.3bn.

The company operates international K-12 schools across Southeast Asia, including XCL World Academy in Singapore, the American School of Bangkok’s Sukhumvit campus, and Vietnam Australia International School.

Demand for private education in the region has attracted growing investor interest as rising incomes and a rapidly expanding middle class increase demand for international schooling options.

KKR has built a significant presence in the education sector globally, backing companies including Lighthouse Learning in India, Taylor’s Education Group in Southeast Asia, and Vietnam-based EQuest Education and Vinschool.

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