Shapoorji Pallonji Group Secures India’s Largest Private Credit Deal

Mumbai-based real estate and construction giant Shapoorji Pallonji Group has raised $3.4 billion in one of India's largest-ever private credit transactions. This monumental financing saw around a dozen large investors, including global investment firms Ares Management Corp, Cerberus Capital Management, Davidson Kempner Capital Management, and Farallon Capital Management, purchase zero-coupon rupee bonds yielding 19.75%. The bonds, which mature in three years, represent a significant step in the growing private credit sector in India.

Deutsche Bank, which acted as the sole arranger of the deal, also participated by investing around $900 million. Other prominent investors in the deal included ASK Wealth Advisors, family offices, and domestic private credit funds like EAAA India Alternatives Ltd., which purchased approximately $85 million worth of the bonds. The deal highlights the increasing interest and investment in India's infrastructure and real estate development, bolstered by Prime Minister Narendra Modi's infrastructure push.

This financing marks a pivotal moment for the Indian private credit industry, which continues to gain momentum as it meets the growing demands for capital across various sectors, including renewable energy, transportation, and urban development.