Shapoorji Pallonji Group Nears Record $3.4 Billion Private Credit Deal

Privately-held Indian conglomerate Shapoorji Pallonji Group is aiming to sign a $3.4 billion debt deal as early as Wednesday evening, in what would be the country’s biggest ever private credit deal, according to people familiar with the matter.

About a dozen large investors, including Ares Management Corp., Cerberus Capital Management LP, Davidson Kempner Capital Management, and Farallon Capital Management participated in the deal, the people said, who asked not to be identified discussing private matters. Deutsche Bank is also investing, and will act as the sole arranger and the trustee, they added.

The deal is a landmark in India’s growing private credit industry, which is getting a boost as Prime Minister Narendra Modi’s infrastructure push increases funding demands for everything from solar power to roads.

Talks are for the three year, zero coupon rupee bond to carry an annual yield of 19.75%, and the loan to value ratio is 16%, the people said. Funds will be disbursed a few days after the deal is signed, they added, and the timing of the signing could change.

Shapoorji Pallonji Group didn’t immediately respond to phone and email requests for comment. Deutsche Bank and Davidson Kempner declined to comment. Ares, Cerberus and Farallon did not immediately respond to a request for comment.