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