Historic Private Credit Deal in the Making

Privately held conglomerate Shapoorji Pallonji Group is on the verge of signing a monumental $3.4-billion debt deal, potentially marking the largest private credit transaction in India's history. Sources close to the matter reveal that the agreement could be finalized as early as Wednesday evening.

Who's Investing?

About 12 major investors, including Ares Management, Cerberus Capital Management, Davidson Kempner Capital Management, and Farallon Capital Management, are participating in this landmark deal. Deutsche Bank is also playing a pivotal role, not only as an investor but also as the sole arranger and trustee for the transaction.

Why This Deal Matters

This deal underscores the rapid growth of India's private credit industry, fueled by Prime Minister Modi's ambitious infrastructure initiatives. The demand for funding across sectors, from solar energy to road construction, is skyrocketing, and this transaction is a testament to the burgeoning opportunities in the market.

Deal Specifications

The three-year, zero-coupon rupee bond is expected to offer an annual yield of nearly 19.8%, with a loan-to-value ratio of 16%. Funds are anticipated to be disbursed shortly after the deal's signing, though the exact timing remains subject to change.

No Immediate Comments

Requests for comments from SP Group, Deutsche Bank, and the involved investors were not immediately responded to, leaving some details of the deal still under wraps.