This Indian company gets Rs 290904000000 loan from..., not Ratan Tata's Tata Group, Mukesh Ambani's Reliance, Narayana Murthy's Infosys, name is....
This Indian company gets Rs 290904000000 loan from..., not Ratan Tata's Tata Group, Mukesh Ambani's Reliance, Narayana Murthy's Infosys, name is...
One of the country's largest industrial houses – Shapoorji Pallonji Group – has completed a USD 3.4 billion (aprox Rs 290904000000) financing in the country's biggest ever private credit deal. The company has received a record loan (non-convertible debenture) from a Germany's Deutsche Bank. Notably, this is the largest private credit deal outside United States. The group has raised this money by pledging a part of their stake in Tata Sons.
The loan is for three years at an interest rate of 19.75 percent, which will be paid at the end of the year. Earlier, the interest rate on the loan taken by the SP Group was slightly lower. In 2023, the group's company Goswami Infratech raised USD 1.7 billion at an 18.75% interest rate.
Where Will The Money Be Used?
A company will use a new loan to consolidate existing debt and grow its real estate and engineering, procurement, and construction (EPC) operations. This financing strategy, according to one investor, offers large corporations a novel long-term funding solution.
The Investment?
Notably, three types of investors have invested in this entire funding. First, those who have already invested in Sterling bonds. Second, those who have already invested in Goswami bonds. And third, new private credit investors from the US, UK, Hong Kong, Singapore and India.
The bank has also roped in several international credit funds to reduce its risk. BlackRock has invested USD70 million, Sona USD180 million, Morgan Stanley Investment Management USD60 million and PIMCO USD45 million. In this way, all of them together have invested about USD355 million. Apart from this, Ares has separately invested USD500 million.
To reduce the risk, the bank roped in several international credit funds. Black rock has invested USD 70 million, Sona USD180 million, Morgan Stanley Investment Management USD60 million and PIMCO USD45 million.
Farallon Capital has also invested USD596 million. Davidson Kempner and Cerberus Capital have also invested USD401 million and USD474 million, respectively.
Loan Was Received On This Condition
A bank has provided a loan to SP Group in exchange for its 9.2% stake in Tata Sons, held through Sterling Investment, Shapoorji Pallonji Real Estate, and SP Energy (an oil and gas company). This transaction marks the first major corporate bond issuance under revised Foreign Portfolio Investor (FPI) regulations. These new rules allow foreign investors to utilize the General Limit Route, eliminating the previous restrictions associated with the Voluntary Retention Route.
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