SP Group Secures $3.3 Billion Through High-Yielding Bond Issue

What is the total amount raised by SP Group through the bond issue? A: SP Group has raised $3.34 billion (₹28,500 crore) through the bond issue. Q: What is the annual yield offered by the non-convertible bonds? A: The non-convertible bonds (NCDs) offered an annual yield of 19.75%, to be paid at maturity. Q: Which assets are used as collateral for the bond issue? A: The collateral includes the group's 9.2% stake in Tata Sons held via Sterling Investment, all shares in its real estate company, Shapoorji Pallonji Real Estate, and its oil and gas business, SP Energy. Q: What are the key creditor protections included in the bond issue? A: Key creditor protections include a most-favoured-nation (MFN) clause and a step-up provision. The MFN clause ensures that any future borrowings at a higher coupon would require the existing facility to match the higher rate. The step-up provision means any covenant breach would trigger an increase in coupon payments. Q: How will the proceeds from the bond issue be used? A: Proceeds from the issuance 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.

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