SP Group Secures $3.3 Billion Refinancing Deal Backed by Tata Sons Stake and Core Assets

The Shapoorji Pallonji Group (SP Group) has secured a $3.3 billion refinancing deal, backed by its stake in Tata Sons, real estate assets, and oil and gas cash flows. The transaction, structured as a zero-coupon non-convertible debenture (NCD), has attracted interest from top global credit investors.

Shapoorji Pallonji GroupRefinancingTata SonsReal EstateOil And GasReal EstateMay 17, 2025

SP Group Secures $3.3 Billion Refinancing Deal Backed by Tata Sons Stake and Core Assets

Real Estate:The Shapoorji Pallonji Group (SP Group), the largest minority shareholder in Tata Sons, has signed a termsheet to raise $3.3 billion through a structured refinancing transaction. This deal is backed by its holding in Tata Sons, real estate assets, and oil and gas cash flows, according to sources familiar with the development. 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.

Frequently Asked Questions

What is the total amount SP Group is raising through the refinancing transaction? A: SP Group is raising $3.3 billion through the refinancing transaction. Q: What is the tenure of the zero-coupon non-convertible debenture (NCD) being structured? A: The NCD has a tenure of three years. Q: Who are some of the global credit investors interested in this deal? A: Some of the global credit investors interested in this deal include Falloron, Cerberus, Ares Management, PIMCO, BlackRock, and Edelweiss Alternatives. Q: What is the estimated value of SP Group's stake in Tata Sons? A: The estimated value of SP Group's 9.185 percent stake in Tata Sons is approximately $18.6 billion. Q: What is the expected yield of the NCD? A: The expected yield of the NCD is 18.5–19 percent.

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