State-run Power Finance Corporation Ltd (PFC) has determined towards extending a mortgage to Shapoorji Pallonji Group, a high official stated, throwing into doubt the infrastructure conglomerate’s plans to refinance debt price round 200 billion rupees ($2.4 billion).
“We have decided not to go ahead with sanctioning of the loan of Shapoorji Pallonji,” Chairman and Managing Director Parminder Chopra informed analysts in a name on November 8. She added that PFC had achieved due diligence and located it was a brand new sector for the government-backed lender to fund.
“Ultimately, the board decided not to go ahead with the loan of around Rs 20,000 core,” she informed Bloomberg News on November 9.
Business Today was unable to confirm the event independently.
The spokesperson added that the group has began exploring different deal constructions, making an allowance for PFC’s suggestions, together with onboarding extra consortium lenders to take forward this deal or alternatively consummate an identical cope with different swimming pools of worldwide capital.
With PFC declining to lend, SP Group will now have to seek out different methods to repay the debt of excessive yielding bond buyers like Ares SSG, Farallon Capital, David Kemper and different home HNIs, who had purchased the bonds, as per a report in Mint.
The group had reached out to PFC for as much as Rs 15,000 crore, Bloomberg had reported earlier citing sources.
In June final 12 months, SP Group entity Goswami Infratech raised Rs 14,300 crore by means of rupee-denominated zero-coupon non-convertible debentures (NCDs) from a gaggle of worldwide buyers, together with Cerberus Capital, Varde Partners, Canyon Capital, Davidson Kempner, and current lenders Deutsche Bank, Edelweiss Special Opportunities Fund and Ares SSG.
Founded by Pallonji Mistry in 1865, the SP Group is certainly one of India’s oldest diversified industrial conglomerates and has a presence throughout sectors similar to actual property, building, infrastructure, solar energy technology and allied providers for the oil and gasoline sector amongst others. The group has had shut ties with the Tata Group.
