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SP Group Raises $3.35 Billion in Private Credit Deal Backed by Deutsche Bank

Written by: Team Angel OneUpdated on: Jun 2, 2025, 2:30 PM IST
Shapoorji Pallonji Group raised $3.35 billion in the largest private credit deal outside the US, backed by its Tata Sons stake and arranged by Deutsche Bank.
SP Group Raises $3.35 Billion in Private Credit Deal Backed by Deutsche Bank
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According to the Economic Times report, Shapoorji Pallonji (SP) Group has raised $3.35 billion through a private credit transaction arranged by Deutsche Bank. This is the largest such deal outside the United States. The funding was raised through 3-year non-convertible debentures (NCDs) with a yield of 19.75%, compounded annually and payable at maturity.

SP Group Raises Funds 

To secure the funds, SP Group offered its 9.2% stake in Tata Sons, held via Sterling Investment, as collateral. Additional backing came from its real estate and energy businesses, Shapoorji Pallonji Real Estate and SP Energy. According to news reports, the company had earlier raised $1.7 billion in 2023 through its unit, Goswami Infratech, at a yield of 18.75%.

Investor Breakdown

Deutsche Bank committed $893 million to the issuance and is expected to retain over $500 million. The remaining amount was syndicated to multiple global investors. Farallon Capital invested $596 million. Ares contributed $500 million, followed by Cerberus Capital at $474 million and Davidson Kempner at $401 million. Sona Capital participated with $180 million, while BlackRock, Morgan Stanley, and PIMCO committed $70 million, $60 million, and $45 million, respectively. 

Other investors included Kingstreet ($150 million), EAAA ($82 million), Synergy Metals & Mining ($75 million), BroadPeak ($55 million), Discovery ($25 million), and ASK Finance ($23 million). In total, 14 investors were involved.

Read More: SP Group Signs $3.3 Billion Refinance Deal Backed by Tata Sons Stake

Investor Categories

The transaction brought together 3 types of investors: existing holders of Sterling bonds, holders of Goswami bonds, and a new group of private credit investors from markets such as the US, UK, Hong Kong, Singapore, and India.

Policy and Timing

The deal is the first major corporate bond issuance following changes in India’s Foreign Portfolio Investor (FPI) rules. These changes allow offshore investments under the general limit route instead of the earlier Voluntary Retention Route (VRR). The deal was initially set to close in March but was delayed by six weeks due to geopolitical developments.

Conclusion 

While a portion of the funds will be used to refinance existing debt and fuel growth in SP Group's real estate and engineering, procurement, and construction (EPC) sectors, the transaction is anticipated to revolutionise capital access for major Indian conglomerates.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 2, 2025, 2:30 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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