Shapoorji Pallonji Group raises $650 million via three-year dollar bond at 14.5% yield as part of Eqyizen refinancing
SP Group Completes $650 Million Dollar Bond Offering
Shapoorji Pallonji Group raised $650 million through a three-year dollar bond on Friday at a yield of 14.5 per cent, completing a significant second tranche of its broader refinancing programme. Deutsche Bank AG, the sole arranger for both tranches of the offering, may invest about $400 million, making it one of the largest investors.
Broader Refinancing Programme Advances
India's Shapoorji Pallonji Group has kicked off a planned ₹25,500 crore ($2.7 billion) refinancing with the sale of local-currency bonds, helping restore confidence among investors after months of uncertainty over the group's ability to refinance looming debt maturities. The deal is split into two primary segments, consisting of ₹15,200 crore in rupee-denominated bonds and approximately $650 million raised through offshore dollar-denominated instruments, with the rupee-denominated bonds structured with a three-year maturity and annual yield of approximately 18.95%, while the dollar-denominated tranche offers a yield of about 14.5%.
Investor Base and Market Context
One of the group's subsidiaries will issue about ₹15,000 crore worth of rupee-denominated bonds to a group of investors including Farallon Capital Management, Davidson Kempner Capital and Cerberus Capital Management. Reports indicate that roughly half of the participating entities are new to the group's financing, suggesting a broadening base of support for its debt strategy.
The successful closing of the Shapoorji deal marks a milestone for India's private credit market, lifting investor confidence.
About Shapoorji Pallonji Group
Shapoorji Pallonji Real Estate is the residential development arm of the Shapoorji Pallonji Group, a Mumbai-headquartered conglomerate founded as Littlewood Pallonji in 1865, with primary business interests in construction and engineering, infrastructure, real estate, energy, and textiles, comprising 15 major companies delivering end-to-end solutions across six business segments, with a workforce of over 37,000 people operating in more than 40 countries. In real estate, Shapoorji Pallonji and Company has developed over 16 million square feet of residential and commercial projects across India.
Founded in 1865 and with iconic construction projects including the building that houses the Reserve Bank of India, Shapoorji sprung to the attention of global debt funds last year when it secured $3.4 billion from investors including Ares Management Corp and Cerberus Capital Management.