Shapoorji Pallonji Eyes ₹25,400 Cr Debt Deal Amid Rising Costs

The Shapoorji Pallonji Group is set to close a ₹25,400 crore three-year debt raise by May 15 under its ongoing Project Ascent initiative, with annual coupons of around 18.75%, according to an ET report.

The fundraising comes at a higher cost than earlier indicated, with pricing moving up from the 16.5%–17% range due to tighter global funding conditions and rising geopolitical risks.

The structure of the deal is spread across multiple investor buckets. A large portion—estimated at $800 million to $1 billion—will be raised through USD bonds, expected to see participation from global investors such as BlackRock, BFAM and Lombard. The remaining amount will be sourced from a mix of foreign banks, domestic investors and private credit funds.

Refinancing Focus, Backed By Tata Sons Stake

A major part of the proceeds will be used to refinance around ₹16,500 crore of rupee bonds at Goswami Infratech, while about ₹4,000 crore is earmarked for partial repayment of existing Porteast bondholders.

Both Goswami Infratech and Porteast Investment borrowings are secured against the group's 18.38% stake in Tata Sons, held through Cyrus Investments and Sterling Investment Corporation.

In addition, the group has approached bondholders seeking a temporary relaxation in a key loan-to-value (LTV) covenant on ₹28,600 crore of Porteast bonds. It has proposed increasing the LTV threshold to 40% from 34% for a three-month period, citing market volatility linked to tensions involving Iran.

Investor Sentiment Tied to Tata Sons Developments

Investor interest in the transaction has been influenced by ongoing developments around potential monetisation of the Tata Sons stake and discussions on a possible listing. Over the past few weeks, two key Tata Trusts have backed the idea of listing the holding company.

Regulatory clarity has also supported sentiment. The Reserve Bank of India recently revised NBFC guidelines, removing qualitative criteria for upper-layer classification and retaining only a quantitative threshold of ₹1 lakh crore in asset size. Tata Sons meets this threshold and has been classified as an upper-layer NBFC in April 2026.

The group's previous fundraising exercises have seen participation from global investors such as Farallon Capital, Cerberus, Davidson Kempner, Varde Partners and Ares Management, reflecting continued interest from private credit players.