Shapoorji Pallonji raises $1.6bn in landmark India private credit deal
India’s Shapoorji Pallonji Group has raised approximately INR151bn ($1.6bn) through one of the country’s largest private credit transactions, highlighting the growing ability of domestic and international alternative lenders to finance large leveraged deals, according to a report by Bloomberg.
The fundraising was backed by a group of Indian investors including InCred Capital Financial Services, DSP Finance and IIFL Capital Services, according to people familiar with the transaction.
Other participants included ASK Asset & Wealth Management and Nuvama Wealth Management. International credit investors Farallon Capital Management, Davidson Kempner Capital Management and Cerberus Capital Management each invested approximately $175m to $200m, the people said.
Deutsche Bank acted as sole arranger for both the rupee and dollar components of the financing and took the largest share of the debt, according to the people.
The proceeds will be used to refinance approximately 155bn rupees of debt at Goswami Infratech, a unit of the infrastructure and real estate conglomerate. The three-year, zero-coupon rupee bonds were priced to yield 18.95%.
The transaction provides significant liquidity to Shapoorji Pallonji after the maturity of Goswami Infratech’s debt had previously been extended twice.
The financing also highlights the increasing depth of India’s private credit market, where domestic capital pools and global alternative investment firms are increasingly willing to back complex, highly leveraged transactions despite heightened volatility across global markets.
Separately, Shapoorji Pallonji raised $650m through a three-year dollar bond priced at a 14.5% yield, according to people familiar with the deal.
The latest transactions form part of a broader NIR255bn fundraising programme. The group is expected to seek a further $350m in debt financing over the next six months, one person said.
The borrowings are secured against shares in Afcons Infrastructure and Tata Sons, according to people familiar with the structure. The financing agreement also requires the group to repay 135bn rupees within 24 months.
The potential monetisation of Shapoorji Pallonji’s 18.4% stake in Tata Sons has been an important factor for investors assessing the group’s ability to generate liquidity, according to people familiar with the transaction.
The deal illustrates the growing willingness of private credit investors to provide large-scale financing against complex collateral packages and concentrated asset exposures.
