According to reports from Bloomberg, Shapoorji and Pallonji Group is in discussions with global investors including BlackRock and JPMorgan Chase & Co for a high-yield bond sale. The infrastructure conglomerate is offering yields of at least 14% to raise as much as $1 billion through three-year dollar bonds. A few additional global asset managers are also in talks to participate in the offering, with some investors potentially using leverage facilities from lenders including Standard Chartered Plc. As per Moneycontrol, the country's largest private credit borrower is offering these yields to raise the substantial amount, with terms still under negotiation and potentially subject to change.
As reported by Bloomberg, the fundraising is part of a broader effort to refinance a borrowing by group entity Goswami Infratech Pvt, which creditors recently agreed to extend to June 30. The proposed deal represents an unusual market approach, as it is not common for companies that have just pushed back debt obligations to return to the market with a new bond sale. The backdrop makes the deal particularly unusual, as it is not common for companies that have just pushed back debt obligations to return to the market with a new bond sale. The proposed deal effectively asks investors to commit capital even as repayment risks persist, with the group working to complete the refinancing process before the extended deadline.
According to Bloomberg reports, the investor interest reflects a risk-reward balance, as double-digit returns are hard to find in global credit markets. Some funds are willing to look past near-term stress in the belief that the infrastructure conglomerate will be able to unlock value from its 18.4% stake in Tata Sons, the holding firm of India's Tata Group, and stabilise its finances. However, delays in unlocking value from that holding, alongside broader market volatility, have complicated refinancing efforts for the group. As per Moneycontrol, some funds are willing to look past near-term stress in the belief that the infrastructure conglomerate will be able to unlock value from its stake in Tata Sons and stabilize its finances.
As reported by Bloomberg, the proposed bond yield sits at the higher end of the range for Indian issuers. In 2020, Lodha Developers International Ltd raised $200 million at 14% as it skirted a default, while Vedanta Resources sold $1 billion of three-year bonds at 13.875% later that year. The proposed offshore issuance is part of the group's broader strategy to complete refinancing before the extended June deadline for Goswami Infratech. In addition to the proposed offshore issuance, the SP Group is exploring local borrowing to meet remaining refinancing needs, as reported by Moneycontrol.
According to Bloomberg reports, in addition to the proposed offshore issuance, the SP Group is exploring local borrowing to meet remaining refinancing needs. A Shapoorji spokesperson didn't reply to Bloomberg's email seeking comment, while spokespersons for JPMorgan and Standard Chartered declined to comment, and BlackRock didn't immediately respond to requests for comment. As per Moneycontrol, the group is working to complete the refinancing process before the extended June 30 deadline for Goswami Infratech.
