SP Group completes long-delayed debt fundraising worth ₹21,500 crore

Shapoorji Pallonji Group has completed its planned fundraising after accepting bids worth ₹21,500 crore ($2.25 billion) for a three-year rupee bond issue, three sources ​said on Friday.

The long-delayed fundraising, aimed at refinancing existing debt, was completed ‌through an investment by one SP Group entity in another, with investors assured the group would monetise part of its Tata Sons stake through a listing or share sale within 18 months.

SP Group, Tata Sons' largest minority shareholder, owns around 18.4% of the company's shares, has struggled for years to monetise the holding.

As part of the fundraising, SP Group company Eqyizen Investment raised funds through three-year zero-coupon rupee bonds yielding 18.95%. The issue closed for subscription on Friday and is due to settle on Monday, the sources ‌said.

 

Mauritius-based SP Group entity Mercury Finance was a key investor in the rupee tranche after raising $650 million through three-year dollar bonds at a 14.50% yield, Reuters reported on Thursday.

"The Mauritius based SPV (special purpose vehicle) invested the entire proceeds from the dollar bonds into the rupee issue, which saw subscriptions from large private credit funds, as well, one of the sources mentioned above said.

Reuters could not identify ​the private credit funds that invested.

The sources declined to be named as they were not ‌authorised to speak to the media. SP Group and Deutsche Bank, the sole arranger and an investor in the issue, did not respond to ​Reuters requests ‌for comment.

The rupee bonds are secured by the group's Tata Sons stake, held through ‌Cyrus Investments, with most of the proceeds earmarked to refinance existing debt.

In June 2023, another SP Group company, Goswami Infratech, raised 14,300 crore through zero-coupon ‌bonds ​at an 18.75% ​yield.

The notes have since had their maturity extended twice, most recently to July 31 from June 30, with the total payout, including interest, ‌now estimated at ​about 14,500 crore.