Whalesbook
Fundraising Components
Shapoorji Pallonji Group's crucial fundraising effort has progressed significantly, with commitments reaching approximately $1.5 billion against a $2.7 billion target. The group is structuring this as $950 million in three-year dollar bonds, offering an initial yield guidance of 14.00%-14.50%. These bonds are expected to feature a put/call option at the end of the first year. The remaining portion of the fundraising will come from rupee debt raised by Goswami Infratech.
Investor Interest
Global financial institutions are showing substantial interest. Foreign banks have reportedly secured commitments worth about $500 million equivalent from clients for the rupee debt tranche. For the dollar bond issue, the company has received interest for the full amount, with significant interest from large private credit funds. Firms like BlackRock and PIMCO, along with Europe-based LGT Bank, are reportedly considering investments in the dollar bonds.
Challenges and Credit Rating
Goswami Infratech's fundraising plans have faced delays, partly attributed to increased rupee hedging costs. This has necessitated a two-month extension on the repayment of high-yield debt originally due April 30. Earlier this month, CareEdge Ratings downgraded Goswami Infratech's bonds to B+ from BB-, citing delays in the group-level fundraising efforts. The current debt raise is intended to refinance notes issued in June 2023.