Shapoorji Pallonji Finance eyes bonds to raise funds in early FY27

Shapoorji Pallonji Finance plans to tap the bond market in early FY27 but says high borrowing costs make a rating upgrade essential

Shapoorji Pallonji Finance (SP Finance) plans to raise funds via debt in the first week of the next financial year and would look for a rating upgrade before it, a senior company official told Business Standard.

 

The size and tenure of the proposed bond issue are yet to be finalised.

 

With prevailing market conditions implying a borrowing cost of nearly 18 per cent, the executive said the company “cannot afford” to raise money at current levels and is therefore prioritising a credit rating upgrade to lower its cost of funds.

 

The long-term objective is to secure a sub-10 per cent