Shapoorji Pallonji Group Secures $3.4 Billion in Private Credit Deal
Indian real estate and construction conglomerate Shapoorji Pallonji Group has completed a $3.4 billion private credit deal, marking the largest of its kind in the country.
Shapoorji Pallonji GroupPrivate Credit DealReal EstateConstructionIndian InvestorsReal Estate MumbaiMay 31, 2025
About a dozen large investors - some using multiple funds - bought zero-coupon rupee bonds that offer a yield of 19.75%, the people said, asking not to be identified because the information is private. The debt matures in three years.
Top investors include Ares Management Corp, Cerberus Capital Management, Davidson Kempner Capital Management, and Farallon Capital Management, people said. Deutsche Bank acted as the sole arranger of the deal and also invested in it.
Deutsche invested about $900 million and will down-sell a portion of the debt, the people said, adding that Cerberus and Davidson bought about $475 million and $425 million worth of bonds, respectively.
Indian investors also participated in the deal, with ASK Wealth Advisors and some family offices buying a portion of the offering, the people said. EAAA India Alternatives Ltd., one of the country's largest domestic private credit funds, bought about $85 million of the bonds, said one of the people.
The financing is a landmark in India's growing private credit industry, which is getting a boost as Prime Minister Narendra Modi's infrastructure push increases funding demands for everything from solar power to roads.
A representative for Shapoorji didn't immediately respond to requests for comment outside of normal business hours. Davidson Kempner declined to comment. Ares, Cerberus, Farallon, EAAA, and ASK did not immediately reply to Bloomberg's requests seeking comments.
Frequently Asked Questions
What is the significance of Shapoorji Pallonji Group's $3.4 billion private credit deal?
The $3.4 billion private credit deal is significant because it is the largest of its kind in India, marking a landmark in the country's growing private credit industry.
Who are the top investors in this private credit deal?
Top investors in the deal include Ares Management Corp, Cerberus Capital Management, Davidson Kempner Capital Management, and Farallon Capital Management.
What is the yield and maturity period of the bonds?
The zero-coupon rupee bonds offer a yield of 19.75% and mature in three years.
How much did Deutsche Bank invest in the deal?
Deutsche Bank invested about $900 million in the deal.
What role does the private credit industry play in India's infrastructure development?
The private credit industry is playing a crucial role in funding India's infrastructure development, as Prime Minister Narendra Modi's infrastructure push increases funding demands for projects ranging from solar power to roads.
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