Shapoorji Pallonji Group signs record $3.4 billion private credit deal
India's Largest Private Credit Deal Closed by Shapoorji Pallonji Group
Shapoorji Pallonji Group completed a $3.4 billion financing in the country's biggest ever private credit deal in late May 2025. The three-year, zero-coupon rupee bond carries an annual yield of 19.75 per cent, while proceeds are primarily being used to refinance existing debt.
Transaction Structure and Investor Participation
About a dozen large investors, including Ares Management Corp, Cerberus Capital Management LP, Davidson Kempner Capital Management, and Farallon Capital Management participated in the deal, with Deutsche Bank investing and acting as the sole arranger and trustee.
The financing represented sustained investor confidence in a conglomerate navigating a prolonged deleveraging programme. The group secured investor commitments of more than $4 billion for its debt sale, surpassing its funding target, indicating robust demand from global private credit players.
Context: Private Credit Expansion in India
The deal reflects India's growing private credit industry, which is being boosted by Prime Minister Narendra Modi's infrastructure push, with foreign firms like KKR & Co, Oaktree Capital Management and Goldman Sachs expanding in the market.
The deal came at a busy time for Indian debt markets, with Reliance Industries having obtained a $2.98 billion-equivalent loan, the largest such deal for an Indian borrower in more than a year.
Shapoorji Pallonji Group's Scale and Heritage
The group's roots date to 1865, when it began as a partnership undertaking civic works in Mumbai, including seawall and pavement work at Girgaum Chowpatty and Malabar Hill reservoir. The family-run construction behemoth has built skyscrapers, landmarks and complex infrastructure, with its portfolio including the country's central bank and the Al Alam palace for the Sultan of Oman.
Established in 1865 in Mumbai, the group operates in over 40 countries and has a workforce of more than 35,000 employees. Its primary business interests include construction and engineering, infrastructure, real estate, energy, and textiles.
The group owns an 18.37% stake in Tata Sons, the unlisted holding company of the Tata Group, India's most valuable conglomerate.
Debt Refinancing as Strategic Priority
The private credit facility addresses the group's ongoing capital restructuring. In recent years, the conglomerate has pursued multiple refinancing initiatives to manage liabilities accumulated during pandemic-era project delays and post-2020 working-capital pressures.
The group, a Mumbai-based construction and real estate conglomerate, had previously sold India's biggest high-yield rupee bond in 2023 and faced challenges repaying debts, with proceeds from deals primarily used to refinance existing debt.
The May 2025 transaction underscores continued international appetite for structured exposure to Indian real estate and infrastructure-backed assets, even in a high-yield environment.