Pimco, BlackRock, Broadpeak, Synergy Capital, and UK-based Sona Asset Management are among the first-time investors in the Shapoorji Pallonji Group's $3.5 billion investment round, which is Asia's largest private credit transaction to date.

Early next week, the fundraising will end, and a week later, the funds will be disbursed.

Due to high investor interest, the deal is fully subscribed, and global hedge funds and asset managers are being allocated in a tight manner.

With an exposure of about $500 million apiece, returning investors include Ares SSG, Farallon, Cerberus, Davidson Kempner, and Deutsche Bank.

One domestic investor in the transaction is Edelweiss Alternatives. The transaction must be arranged by Deutsche Bank. Together, Edelweiss and new investors are risking $1 billion on this transaction.

The funding is a component of the group's capital restructuring and refinancing initiative, which also includes support for group end customers and payback of prior obligations.

 

After the rupee appreciated, the ultimate size—which was close to $3.5 billion in dollars—was changed from the original $3.25 billion to $3.5 billion.

The Shapoorji Pallonji group has already raised money. In 2021, Ares SSG and Farallon contributed $2.6 billion to SP's promoter company Sterling Investments, which pledged a comparable 9.1 percent interest in Tata Sons.

This fund raise will be used to re-finance those NCDs that have been rolled over since then and are priced at somewhat less than 20 percent.

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These two high-yield facilities already own the SP Group's whole 18.28 percent stake in Tata Sons, divided between Sterling and Cyrus.