Kalpataru, Shangrila Infracon plan debt fundraise via private credit funds: Report

Two Indian real estate companies are set to raise an aggregate of around 26 billion rupees ($269 million) through sale of shorter duration bonds, two sources aware of the matter said on Wednesday.

Kalpataru Properties plans to raise 16.35 billion rupees through four-year and ‌nine-day bonds ⁠and Shangrila ⁠Infracon India aims to raise 9.50 billion rupees through three-year notes, the sources added.

They are likely to receive interest from private credit funds, which have been on the lookout for decent-sized deals, one of the sources said.


The sources requested anonymity as they are not authorised to ​speak to the media. The real ⁠estate firms ‌did not respond to Reuters emails seeking ​comment.

According to ​the sources, Kalpataru Properties, which is returning to ⁠debt markets after a gap of two years, ​will offer a coupon of 8%, payable on ​a quarterly basis. The final redemption will include an undisclosed premium to enhance the effective yield.

GSS India Opportunities Alternate Investment Fund has committed to 50% of Kalpataru's issue, while the rest would be raised through bidding, the sources added. GSS ‌India did not reply to a Reuters email seeking comment.

This is Shangrila Infracon's maiden issue. The firm ​is still in ​talks with investors ⁠and will announce the issue in coming days, the bankers added.

Real estate received the highest allocation from private credit funds in 2025, ​ahead of sectors like healthcare and industrial products, according to a report from consulting firm EY.

The share of private credit funds is also rising as banks remain selective in lending to real estate companies, merchant bankers said.