Shapoorji Pallonji Group seeks $1.5 billion refinancing through zero-coupon bond offering
Shapoorji Pallonji Advances Refinancing Push with $1.5 Billion Bond Offering
Global investors including Cerberus Capital Management, Farallon Capital Management and Ares Management Corp. are in talks to invest in Shapoorji Pallonji Group's proposed rupee debt of 143 billion rupees ($1.5 billion), according to sources familiar with the discussions announced on May 15.
The infrastructure-focused conglomerate, backed by billionaire Shapoor Mistry, is proposing to offer 18.75 per cent yield on the zero-coupon bonds of its unit Goswami Infratech Pvt. This offering represents a continuation of the group's efforts to address near-term debt obligations through capital market access.
Investor Participation and Deal Structure
The proposed bond has attracted commitments from several major global asset managers. Farallon may invest at least $300 million in the debt, while Cerberus is in discussions to buy around $150 million. Deutsche Bank, the arranger of the deal, is expected to commit about $400 million, while Davidson Kempner may invest as much as $200 million, with JPMorgan and Bank of America also considering subscribing to a portion of the bonds.
Terms of the potential offering may still change, the sources noted. The offering comes amid broader capital market developments in India's infrastructure and private credit spaces.
Part of Broader Debt Management Strategy
The fundraise is part of a broader effort by the SP Group to refinance its existing borrowing that creditors recently agreed to extend until June. The group had previously secured extensions on related obligations as it pursued longer-term financing solutions.
Earlier this year, Shapoorji Pallonji group signed a $3.4 billion private credit deal, marking the biggest of its kind in the country. The three-year, zero-coupon rupee bond has an annual yield of 19.75 per cent. Proceeds will primarily be used to refinance existing debt.
About Shapoorji Pallonji Group
Shapoorji Pallonji Group is one of India's oldest and most trusted construction and real estate companies, founded in 1865. The company began as a small construction firm and has now grown into a global business with a presence in more than 40 countries. Led by the Mistry family, with Shapoor Mistry as the current chairman, the group has built a strong reputation for quality and reliability over decades of work in construction, real estate, infrastructure, water, energy, and financial services.
The SP Group owns an 18.6% stake in Tata Sons, which has featured prominently in the group's capital structure discussions. The developer has delivered numerous landmark projects in India and abroad, including luxury residential towers, commercial complexes, hospitals, and even international buildings.