Shapoorji Pallonji Group Secures Two-Month Debt Extension from Investors
SP Group unit gets investor nod for 2-month debt extension plea: Report
Business Standard
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India's Shapoorji Pallonji Group has received preliminary approval from investors for a two-month extension on debt repayment for its unit, Goswami Infratech. The company, which raised ₹143 billion (approximately $1.54 billion) through bond sales, seeks to move the maturity date from April 30 to June 30, 2024.
- 01Goswami Infratech, part of Shapoorji Pallonji Group, has requested a two-month extension on debt repayment.
- 02The company raised ₹143 billion (approximately $1.54 billion) through bond sales in June 2023.
- 03The outstanding debt amount after pre-payments is ₹83.43 billion.
- 04Investors are likely to approve the extension without additional demands.
- 05Goswami Infratech's plans to raise $2.8 billion to $3.1 billion have faced delays due to increased hedging costs.
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India's Shapoorji Pallonji Group has reportedly gained investor support for a two-month extension on debt repayment for its real estate and civil engineering unit, Goswami Infratech. The firm raised ₹143 billion (around $1.54 billion) in June 2023 through bond sales to prominent foreign private credit funds, including Ares Management and Cerberus Capital Management. The bonds, initially issued at a yield of 18.75%, now carry an outstanding amount of ₹83.43 billion after partial pre-payments. Goswami Infratech has proposed to extend the maturity date of the high-yield notes from April 30 to June 30, 2024, with most investors expected to approve the request without additional conditions. The company is also facing delays in its plans to raise between $2.8 billion and $3.1 billion due to a spike in rupee hedging costs, with Deutsche Bank acting as the sole arranger for the upcoming zero-coupon bond issue.
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The extension may provide Goswami Infratech with the necessary time to stabilize its financial position, potentially impacting its future projects and operations.
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