Shapoorji Pallonji Group has kicked off a planned ₹25,500-crore ($2.7 billion) refinancing with the sale of local-currency bonds, according to people familiar with the matter, allaying concerns over looming debt repayments.
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, said the people, who asked not to be identified because the information is private. The funds will be used to refinance debt at unit Goswami Infratech Pvt.
Deutsche Bank AG is the sole arranger for the offering and may invest about $400 million, making it one of the largest investors, the people said.
The fundraising provides the infrastructure-to-real-estate conglomerate much-needed liquidity after it twice extended the maturity of debt owed by Goswami. It also eases concerns about its ability to refinance near-term debt after months of negotiations with creditors.
The borrowing is backed by shares in group company Afcons Infrastructure Ltd. and Tata Sons Pvt., the unlisted holding company of the Tata Group in which the SP Group holds a stake, the people said. The loan agreement also requires the company to repay ₹13,500 crore within 24 months. The transaction is expected to close as early as Friday, according to the people.
