SP Group Secures $3.3 Billion in High-Yielding Bond Issue
The Shapoorji Pallonji Group has successfully raised $3.3 billion through a high-yielding debt issue, marking one of the largest private credit fundraises in India this year. The funds will be used to redeem existing non-convertible debentures and to support the group's diverse business ventures.
Bond IssueShapoorji Pallonji GroupHighyielding DebtNonconvertible BondsPrivate CreditReal Estate NewsMay 17, 2025
Frequently Asked Questions
What is the total amount raised by SP Group through the bond issue?
SP Group raised $3.34 billion (₹28,500 crore) through the bond issue.
What is the annual yield offered by the non-convertible bonds?
The non-convertible bonds offered an annual yield of 19.75%.
Who were the primary investors in this bond issue?
Ares, Farallon, Cerberus Capital Management, and Davidson Kempner are likely to subscribe to roughly $400 million each, while Deutsche Bank could subscribe to about $300 million.
What will the proceeds from the bond issue be used for?
The proceeds will be used primarily to redeem NCDs issued by SP Group's Sterling Investment Corp. Ltd. to Ares and Farallon, totaling around $2.4 billion. The remainder will go toward redeeming a part of Goswami Infratech's NCDs.
What are the key protections included in the bond structure?
The structure includes a most-favoured-nation (MFN) clause and a step-up provision. The MFN clause ensures that any future borrowings at a higher coupon require the existing facility to match the higher rate. The step-up provision means any covenant breach would trigger an increase in coupon payments.
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