Shapoorji Pallonji Group Completes India’s Largest $3.4 Billion Private Credit Deal

The Shapoorji Pallonji Group has reportedly finalized a private credit agreement valued at $3.4 billion, which is said to be the largest private credit transaction ever recorded in India. The deal highlights the group’s strategic initiatives to strengthen its financial base, while reflecting the expanding role of private credit markets within the country.

Deal Structure and Investors Involved

The financing was structured as a three-year zero-coupon bond denominated in Indian rupees, offering an annual yield of 19.75%. Deutsche Bank is reported to have acted as the sole arranger and trustee. The bond attracted a consortium of global investors, including Ares Management Corporation, Cerberus Capital Management LP, Davidson Kempner Capital Management, and Farallon Capital Management.

Purpose of the Fundraise

The funds raised through this transaction are primarily intended to refinance the group’s existing debt, aiming to improve its financial flexibility. Additionally, the capital is expected to support ongoing and upcoming projects across the group’s diverse sectors such as construction, real estate, infrastructure, and energy.

Impact on India’s Private Credit Market

This landmark transaction is seen as a significant development in the maturation of India’s private credit market. It indicates strong interest from international investors in Indian private credit assets and highlights a growing trend among Indian conglomerates to leverage alternative financing avenues beyond traditional banking channels.

Looking Ahead

The successful closure of this $3.4 billion private credit deal by the Shapoorji Pallonji Group is expected to set a precedent for large-scale private financing deals in India. It marks a strategic shift in corporate financing practices, underscoring the evolving dynamics of funding sources in India’s financial landscape.

Disclaimer: This news has been rewritten based on publicly available information and does not constitute financial advice. Readers are advised to verify details from official sources before making any investment or financial decisions.