Power Finance Corporation turns down Shapoorji Pallonji Group’s Rs 20,000 crore fundraising plan
The spokesperson of the Shapoorji Pallonji Group said that the group has started exploring alternative deal structures, taking into account PFC’s feedback.
- Nov 9, 2024,
- Updated Nov 9, 2024 4:00 PM IST
State-run Power Finance Corporation Ltd (PFC) has decided against extending a loan to Shapoorji Pallonji Group, a top official said, throwing into doubt the infrastructure conglomerate’s plans to refinance debt worth around 200 billion rupees ($2.4 billion).
“We have decided not to go ahead with sanctioning of the loan of Shapoorji Pallonji,” Chairman and Managing Director Parminder Chopra told analysts in a call on November 8. She added that PFC had done due diligence and found it was a new sector for the government-backed lender to fund.
“Ultimately, the board decided not to go ahead with the loan of around Rs 20,000 core,” she told Bloomberg News on November 9.
Business Today was unable to verify the development independently.
The spokesperson added that the group has started exploring alternative deal structures, taking into account PFC’s feedback, including onboarding additional consortium lenders to take ahead this deal or alternatively consummate a similar deal with other pools of global capital.
With PFC declining to lend, SP Group will now have to find other ways to repay the debt of high yielding bond investors like Ares SSG, Farallon Capital, David Kemper and other domestic HNIs, who had bought the bonds, as per a report in Mint.
The group had reached out to PFC for up to Rs 15,000 crore, Bloomberg had reported earlier citing sources.
In June last year, SP Group entity Goswami Infratech raised Rs 14,300 crore through rupee-denominated zero-coupon non-convertible debentures (NCDs) from a group of global investors, including Cerberus Capital, Varde Partners, Canyon Capital, Davidson Kempner, and existing lenders Deutsche Bank, Edelweiss Special Opportunities Fund and Ares SSG.
Founded by Pallonji Mistry in 1865, the SP Group is one of India’s oldest diversified industrial conglomerates and has a presence across sectors such as real estate, construction, infrastructure, solar power generation and allied services for the oil and gas sector among others. The group has had close ties with the Tata Group.
State-run Power Finance Corporation Ltd (PFC) has decided against extending a loan to Shapoorji Pallonji Group, a top official said, throwing into doubt the infrastructure conglomerate’s plans to refinance debt worth around 200 billion rupees ($2.4 billion).
“We have decided not to go ahead with sanctioning of the loan of Shapoorji Pallonji,” Chairman and Managing Director Parminder Chopra told analysts in a call on November 8. She added that PFC had done due diligence and found it was a new sector for the government-backed lender to fund.
“Ultimately, the board decided not to go ahead with the loan of around Rs 20,000 core,” she told Bloomberg News on November 9.
Business Today was unable to verify the development independently.
The spokesperson added that the group has started exploring alternative deal structures, taking into account PFC’s feedback, including onboarding additional consortium lenders to take ahead this deal or alternatively consummate a similar deal with other pools of global capital.
With PFC declining to lend, SP Group will now have to find other ways to repay the debt of high yielding bond investors like Ares SSG, Farallon Capital, David Kemper and other domestic HNIs, who had bought the bonds, as per a report in Mint.
The group had reached out to PFC for up to Rs 15,000 crore, Bloomberg had reported earlier citing sources.
In June last year, SP Group entity Goswami Infratech raised Rs 14,300 crore through rupee-denominated zero-coupon non-convertible debentures (NCDs) from a group of global investors, including Cerberus Capital, Varde Partners, Canyon Capital, Davidson Kempner, and existing lenders Deutsche Bank, Edelweiss Special Opportunities Fund and Ares SSG.
Founded by Pallonji Mistry in 1865, the SP Group is one of India’s oldest diversified industrial conglomerates and has a presence across sectors such as real estate, construction, infrastructure, solar power generation and allied services for the oil and gas sector among others. The group has had close ties with the Tata Group.