Shapoorji Pallonji Group raises Rs 2,610 crore through long tenor bonds

MUMBAI: Shapoorji Pallonji Group has raised Rs 2,610 crore through long tenor bonds for one of its special purpose vehicle SP Jammu Udhampur Highway Limited.

The SPV was set up for the design, construction, development, finance and operation of a 64.58 km highway stretch between Jammu and Udhampur, the company said in a statement.

“Proceeds of the bond were used to refinance the issuer’s existing foreign currency and rupee loans, helping the company to lower its cost of debt and importantly eliminate exchange rate risk of the foreign currency debt,” the company statement read. The interest rate (average price) for the bonds is 9.15% payable semi-annually.

The bonds are issued with multiple series with maturities starting December 2015 and ending by December 2030, the company said.

The infrastructure space which was struggling for some time in India has seen some traction in last 18 months. Many Indian infrastructure companies are now upbeat as the government is looking to give a renewed push to the sector.