BlackRock to Invest in Shapoorji Pallonji Unit Dollar Debt

BlackRock Set to Invest in Indian Dollar Bond

BlackRock, the world's largest money manager, is poised to invest in a dollar bond to be issued by a unit of India's Shapoorji Pallonji Group this month. According to two people directly familiar with the transaction, the asset manager is considering an initial investment of $100 million to $200 million in the bond issue via an Asia-focused fund. This move is likely to reassure other investors, who may be hesitant to participate in the bond issue without the backing of a prominent asset manager like BlackRock.

The deal would be a private placement, and the launch timing could not be ascertained immediately. Deutsche Bank is serving as the arranger for the bond issue. The SP Group unit, Goswami Infratech, is planning to raise approximately $3 billion, with $750 million to $950 million coming from the dollar bond and the remainder through rupee-denominated debt.

Goswami Infratech's fundraising plans have been delayed due to a surge in rupee hedging costs, which has forced the company to seek an extension on the repayment of high-yield debt originally due on April 30. The company had previously raised 143 billion rupees ($1.51 billion) in June 2023 through a bond issue, in which marquee foreign investors had participated. The fresh debt raise would refinance these notes.

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Apart from BlackRock, other large funds have shown intent to participate in the bond issue. However, the full list of investors likely to participate in the issue has not been determined. Earlier this week, CareEdge Ratings downgraded bonds of Goswami Infratech to B+ from BB-, citing delays in group-level fundraising.