SP Group likely to raise $3.25 billion at 19.75%

Shapoorji Pallonji Group is set to price a $3.25 billion offshore fundraising this week, with proceeds to be partly used to refinance Goswami Infratech's 2023 bond, people familiar with the matter told ET.

The proposed non-convertible debentures are expected to carry a 19.75% coupon and a 3.5-year tenor. Anchor commitments of around $2 billion are likely to come from existing backers including Ares SSG, Farallon Capital, Cerberus and Davidson Kempner, said one of the sources, adding that new investors such as PAG and Allianz are also expected to participate. In addition, Rajeev Misra, a former SoftBank executive, plans a significant investment through his new venture, One Investment Management, as reported by ET on March 3.

The issuance follows a three-month global roadshow that began in December 2024 and is drawing demand from offshore investors. However, domestic institutions are not big participants, said the sources cited above.


The Shapoorji Pallonji Group initially targeted a coupon of 18.75% for the fundraise, but widening spreads between US Treasuries and corporate bonds, coupled with rising investor caution, pushed the final pricing up to 19.75%.

The group had launched roadshow for deal in December 2024, with Deutsche Bank leading the transaction. While fundraise was expected to close by March-end, it has been delayed and is likely to conclude by mid-May. Spokespersons at SP did not respond to a request for comment.

The fundraising, targeted at $2.5 billion, was upsized to $3.25-$3.3 billion to refinance maturities. The group informed investors that a portion of the proceeds would go toward refinancing Goswami's ₹14,300 crore zero-coupon bonds issued in June 2023.