Deal split between international and local private credit firms. Potentially offers value as margins compress in “easier” jurisdictions
$1.6 billion – mixed international and local
Real estate construction group Shapoorji Pallonji is reported to have raised US$1.6 billion (INR 151 billion) in a private credit deal across dollars and rupees.
Cerberus, Davidson Kempner, Farallon
For international investors and arrangers, it’s interesting that a lot of the deal was provided by global managers.
International private credit investors including Farallon, Davidson Kempner, and Cerberus. Each reportedly invested around $200 million.
Local investors included InCred Capital, DSP Finance, and IIFL.
Arranged by Deutsche Bank
Deutsche Bank was the sole arranger on the transaction. They were also reportedly a large investor in the deal.
The deal is secured by Afcons Infrastructure and Tata Sons shares.
Complexity and risk vs returns
Private credit managers may want to consider assessing the Indian market for growth capital sources and capital deployment as competition increases elsewhere.
The pricing is not announced, but the company recently issued a 3-year USD bond at 14.5%.