Shapoorji Pallonji Group Seeks to Extend Unit's Debt Maturity Amid Refinancing Delays
India's Shapoorji Pallonji Group Seeks Investor Approval to Refinance Goswami Infratech Debt
India's Shapoorji Pallonji Group is seeking investor approval to push back the maturity of debt issued by its real estate and civil engineering unit, Goswami Infratech. According to three sources familiar with the matter, the proposal aims to extend the maturity of high-yield notes that are currently set to mature on April 30.
Goswami Infratech has been looking to raise $2.75 - $3.1 billion for the last few months, a refinancing plan that has been delayed by a surge in rupee hedging costs following India's central bank introducing measures to clamp down on speculative trades in the currency as the war in the Middle East fanned market volatility. The refinancing plan includes raising around $500 million-$1 billion via U.S. dollar-denominated bonds, while the remaining will be raised through rupee-denominated zero-coupon bonds.
The funds are being raised to refinance the high-yield notes currently set to mature on April 30, which have an outstanding amount of 83.43 billion rupees ($894.02 million), according to local rating agency Care Ratings. The initial plan was to close the deal by April 10, but due to higher hedging costs, the issue has been pushed back to May-June. The current stress seen in U.S. private credit has also made investors cautious, contributing to the group's decision to push back refinancing Goswami Infratech's debt.
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In January, the SP Group had said Goswami Infratech will refinance its bonds well ahead of their due dates and based on feedback and in-principle interest from investors, the transaction would be at substantially tighter pricing, reflecting an improved credit profile. However, it appears that the group's refinancing plans have been affected by recent market developments.
| Refinancing Plan | U.S. Dollar-Denominated Bonds | Rupee-Denominated Zero-Coupon Bonds |
|---|---|---|
| Amount to be Raised | $500 million-$1 billion | Remaining (exact amount not specified) |
| Currency | U.S. Dollars | Indian Rupees |
Shapoorji Pallonji Group did not immediately respond to an email requesting comment.
Investor Takeaway
Shapoorji Pallonji Group is seeking to extend debt maturity for its unit Goswami Infratech due to refinancing delays.
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