BlackRock likely to invest in Shapoorji Pallonji unit dollar debt

BlackRock, the world's largest money manager, is set to invest in a dollar bond to ​be issued by a unit of India's Shapoorji ​Pallonji Group this month, two people directly familiar with the ‌transaction said.

The asset manager is considering an initial investment of $100 million to $200 million in the bond issue via an Asia-focused fund, a move likely to reassure other investors, the first source said.

The deal would be a private placement, and the launch timing could not be ascertained immediately. Deutsche Bank is the arranger.

The SP Group unit, Goswami Infratech, is planning to raise about $3 billion, of which $750 million to $950 million would be from the dollar ‌bond and the remainder through rupee-denominated debt, the sources said.

 

The sources requested anonymity since they are not authorised to speak to the media. Deutsche Bank, BlackRock and Shapoorji Pallonji Group did not immediately respond to Reuters queries.

Goswami Infratech's fundraising plans have been delayed, with a surge in rupee hedging costs playing a key role, forcing ​the company to seek an extension on the repayment of high-yield debt originally due ‌on April 30.

The company had raised ₹14,300 crore ($1.51 billion) in June 2023 through a bond issue, in which marquee ​foreign ‌investors had participated. The fresh debt raise would refinance these notes.

"Apart from BlackRock, ‌other large funds have shown intent to come on board as part of the bond issue," the second person said.

Reuters could ‌not ​determine the full ​list of investors likely to participate in the issue.

Earlier this week, CareEdge Ratings downgraded bonds of Goswami Infratech to B+ ‌from BB-, citing ​delays in group-level fundraising.