India's Shapoorji Pallonji draws strong interest for debt sale, sources say
MUMBAI, March 21 (Reuters) - India's Shapoorji Pallonji Group has secured investor commitments of more than $4 billion for its debt sale in April, surpassing its funding target, two sources familiar with the matter said on Friday.
The group, which caters to sectors including construction and real estate, plans to raise $3.2 billion to $3.3 billion through the bond issue, with private credit funds expected to account for a bulk of the subscriptions, the sources said.
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Foreign private credit funds Ares Management and Farallon Capital Management are likely to be the largest investors for the issue, while Cerberus Capital Management, Davidson Kempner Capital Management, One Investment Management and Varde Partners are among other big investors, they said.
Altogether, the investors may bid for 50%-75% of the issue, the sources added, requesting anonymity as they are not authorised to speak to the media.
The bond will likely have a maturity of about four years, with a pre-payment clause of redemption within three years, effectively reducing the maturity.
"The coupon on the bond issue is close to being finalised between 18% and 20%," one of the sources said. "This yield is very lucrative and is drawing heavy interest from private credit funds."
The bond is expected to be secured by shares of Tata Sons that are held by the group through Sterling Investment Corp, they added.
Deutsche Bank is the sole arranger for the deal. The proceeds will primarily be used to refinance existing debt, the sources said.
Shapoorji Pallonji Group, Cerberus Capital Management, One Investment Management, Varde Partners and Farallon Capital Management did not respond to an email seeking comment.
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03-04-2025
- Reuters
Investors dive for cover as Trump tariffs skittle stocks
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Trading Day: T-Day arrives, markets rise
ORLANDO, Florida, April 2 (Reuters) - TRADING DAY Making sense of the forces driving global markets Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. By Jamie McGeever, Markets Columnist New reality about to dawn U.S. markets on Wednesday were determined to put on a brave face ahead of U.S. President Donald Trump's announcement of sweeping tariffs that will escalate a global trade war and threaten to upend the entire international trading system. Stocks rose sharply and Treasuries and the dollar ended notably weaker. Buoyed by hope or expectation that the tariffs wouldn't be as draconian as feared, U.S. indices closed in the green. The deeper analysis of the tariff fallout - lower growth and higher inflation - will be for tomorrow and beyond. Fed policymakers and other central bankers are in a bind - do they respond to the weaker growth impulse, or higher inflation? 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Their baseline model suggests that a 3.6 percentage points increase in tariffs results in a 0.4% decline in economic output five years later. They actually found that the projected longer-term effect of tariffs on GDP was higher than the estimated medium-term impacts, but they limited their study to a five-year time horizon "in an effort to be conservative." PROCEED WITH CAUTION Right now, Fed officials are also erring on the side of caution. In their revised economic projections released last month, they maintained their forecast for two quarter-point rate cuts this year, although a hawkish underlying shift in the "dot plot" of officials' individual projections moved the median closer to one cut. And Fed Chair Jerome Powell has been at pains to be neutral and non-committal on the question of tariffs, insisting that, before acting, he and his colleagues must wait and see what the actual impact is on activity, prices and employment. Fed Governor Chris Waller, however, was a bit bolder in a speech to the OECD in Paris in January, stating: "If, as I expect, tariffs do not have a significant or persistent effect on inflation, they are unlikely to affect my view of appropriate monetary policy." The market is certainly focusing on the "stag" more than the "flation". U.S. businesses are reporting the highest factory gate prices in years and consumer inflation expectations are the highest in decades, according to some measures, yet bond yields are falling and interest rate futures are pricing in multiple cuts this year and into 2026. Investors appear to be betting that, if the tariff push comes to the recession shove, the Fed will focus on stimulating growth. History suggests they're right. What could move markets tomorrow? Japan services PMI (March) China 'Caixin' services PMI (March) UK services PMI (March) ECB board member Isabel Schnabel speaks U.S. weekly jobless claims U.S. services ISM (March) If you have more time to read today, here are a few articles I recommend to help you make sense of what happened in markets today. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.
