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Shapoorji Pallonji Group has completed India's largest private credit financing deal, raising USD 3.4 billion through a three-year zero-coupon bond offering a 19.75% yield. Deutsche Bank led the transaction as sole arranger, investing USD 900 million, with additional participation from global firms like Ares Management, Cerberus Capital, Davidson Kempner, and Farallon Capital, alongside Indian investors ASK Wealth Advisors and EAAA India Alternatives. The funds will primarily refinance existing debt and fuel new investments in real estate and infrastructure. The deal follows the group's strategic consolidation of its property assets under Shapoorji Pallonji Real Estate, now valued at USD 6 billion. The move strengthens the group's financial footing and positions it for agile growth amid India's dynamic real estate sector.
Shapoorji Pallonji Group made headlines earlier this month by completing India's largest private credit financing deal worth USD 3.4 billion. This landmark transaction was structured as a three-year zero-coupon bond offering a robust yield of 19.75%, drawing considerable interest from both international and Indian investors.
Deutsche Bank took the lead as the sole arranger for the deal, investing around USD 900 million itself. Alongside Deutsche Bank, prominent global investment firms such as Ares Management, Cerberus Capital Management, Davidson Kempner Capital Management, and Farallon Capital Management committed substantial amounts. The transaction also saw participation from notable Indian investors, including ASK Wealth Advisors and EAAA India Alternatives Ltd., demonstrating strong domestic confidence in the offering.
The substantial capital raised is earmarked primarily for refinancing Shapoorji Pallonji Group's existing debt obligations, thereby easing the company's financial liabilities. Additionally, the funds will support the group's ongoing and future ventures in real estate and infrastructure, sectors where the conglomerate has a significant presence.
This financing event comes at a pivotal time as Shapoorji Pallonji Group has recently consolidated its real estate holdings under a new entity, Shapoorji Pallonji Real Estate, which is estimated to be valued at approximately USD 6 billion. This strategic consolidation aims to enhance operational efficiency and unlock greater value from the group's extensive real estate portfolio, positioning it for more agile growth amid India's competitive property market.
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