Some bondholders of Shapoorji Pallonji Group, India’s largest private credit borrower, are attempting to sell debt linked to one of its units as prolonged refinancing talks test investor patience, people familiar with the matter said.
Traders in Singapore and Hong Kong have been offering the so-called non-convertible debentures, a type of private credit in India, of subsidiary Goswami Infratech Pvt. at about 90 per cent of par in the past two weeks, although it wasn’t immediately clear whether any trades were executed, according to the people, who asked not to be identified discussing private matters. In credit markets, such levels can indicate that holders are starting to have concerns about potential strains, even if they’re still far from distressed levels.
An investment unit of the infrastructure conglomerate has recently been asking creditors to allow it to delay the repayment of the notes with ₹8,343 crore ($884 million) outstanding that mature this month. Some investors who individually hold the equivalent of $100 million or less were seeking to exit or trim their positions, the people said. Shapoorji didn’t respond to a request for comment.
Shapoorji is closely watched in India’s private credit market, one of Asia’s fastest growing, and in the nation’s economy given its clout employing more than 37,000 people. 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.
