The Shapoorji Pallonji Group has successfully completed a significant fundraising initiative, securing ₹21,350 crore through the issuance of unrated, unlisted, secured, zero-coupon, redeemable non-convertible debentures (NCDs) by Eqyizen Investment Private Limited, a promoter entity of the SP Group. This strategic financial maneuver was secured against various assets, including a portion of the SP Group’s shares in Afcons Infrastructure Limited and half of its holdings in Tata Sons Private Limited.
Legal expertise played a crucial role in this transaction. Desai & Diwanji provided advisory support to Eqyizen Investment on the issuance of these NCDs, while A&O Shearman served as the English legal counsel for Eqyizen Investment. Furthermore, TT&A offered counsel to Deutsche Bank A.G, which acted as the coordinating bank for the NCD issuance. TT&A also guided the bank in its role as a placement agent concerning the issuance of USD 650 million in 14.5% senior, secured, unrated notes due 2029 by Mercury Finance Company. The proceeds from these USD Notes were strategically used to subscribe to a portion of the INR NCDs.
The TT&A legal team was comprised of notable professionals including Sonali Mahapatra (Partner), Kartik Jigyasi (Managing Associate), and associates Adesh Sharma, Anushree Verma, Kashish Agarwal, and Tarun Doyal in the Banking & Finance sector. The Debt Capital Markets team included Rahul Gulati (Partner), Priyanka Kumar (Partner), Saara Ahmed (Managing Associate), and Shrijaya Singh (Associate).
Linklaters acted as the English legal counsel for Deutsche Bank A.G in these transactions, while Appleby served as the Mauritian legal counsel for Mercury Finance Company.
This transaction marks one of the largest private credit deals in India, drawing substantial interest from both onshore and offshore private credit investors. The deal is particularly noteworthy for its innovative financing structure, which seamlessly integrates INR non-convertible debentures with USD bonds to fulfill the Shapoorji Pallonji Group’s funding objectives. The raised funds are earmarked for refinancing existing debt across other entities within the SP Group and to fulfill capital requirements for group ventures.
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