SP Group Secures $3.3 Billion Refinancing Deal Backed by Tata Sons Stake and Core Assets
The Shapoorji Pallonji Group (SP Group) has signed a $3.3 billion refinancing term sheet, backed by its stake in Tata Sons, real estate assets, and oil and gas cash flows. The deal has attracted interest from marquee global credit investors and offers a yield of 18.5–19 percent.
Shapoorji Pallonji GroupTata SonsRefinancingNonconvertible DebentureCredit InvestorsReal Estate NewsMay 17, 2025
The transaction is being structured as a zero-coupon non-convertible debenture (NCD) with a tenure of three years and an expected yield of 18.5–19 percent. Sources said the deal has drawn interest from marquee global credit investors including Falloron, Cerberus, Ares Management, PIMCO, BlackRock, and Edelweiss Alternatives. The minimum investment size is set at Rs 10 crore per PAN, and final documentation is expected to follow after completion of due diligence.
The primary collateral for the refinancing includes a 9.185 percent stake in Tata Sons, held through Sterling Investment Corporation Pvt Ltd (SICPL), which sources estimate to be valued at approximately $18.6 billion. In addition, pledged shares of SP Group’s real estate platform, SPRE, are being offered as part of the security package, with a valuation of roughly $3.2 billion, the sources added.
Oil and gas business cash flows have also been ringfenced to contribute towards interim repayments. According to people aware of the terms, the structure provides for interim monetization of approximately $1.3 billion—representing 35 to 40 percent of the NCD face value—over the next 24 months. These interim payments are expected to come largely from the real estate and oil and gas verticals of the group.
The total loan-to-value (LTV) ratio for the transaction is estimated at a conservative 14.7 percent, providing significant collateral comfort for investors, according to one of the investors evaluating the deal.
SP Group, a diversified conglomerate with interests in construction, real estate, and energy, has been seeking to strengthen its financial position. The refinancing deal is a significant step towards achieving this goal and demonstrates the group's commitment to maintaining a strong balance sheet.
The Shapoorji Pallonji Group, founded in 1932, is one of India's leading business houses. With a presence in various sectors, including construction, real estate, and energy, the group has a rich history of innovation and growth. The refinancing deal is expected to bolster its financial health and support its strategic initiatives.
Frequently Asked Questions
What is the total amount SP Group is raising through the refinancing deal?
SP Group is raising $3.3 billion through the refinancing deal.
What is the tenure and expected yield of the refinancing transaction?
The transaction is structured as a zero-coupon non-convertible debenture (NCD) with a tenure of three years and an expected yield of 18.5–19 percent.
What are the primary collaterals for the refinancing deal?
The primary collaterals include a 9.185 percent stake in Tata Sons, real estate assets, and oil and gas cash flows.
Which global credit investors are interested in the deal?
The deal has drawn interest from marquee global credit investors including Falloron, Cerberus, Ares Management, PIMCO, BlackRock, and Edelweiss Alternatives.
What is the loan-to-value (LTV) ratio for the transaction?
The total loan-to-value (LTV) ratio for the transaction is estimated at a conservative 14.7 percent.
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