In a move that could provide significant relief to one of India’s oldest business conglomerates, BlackRock, the world’s largest asset manager, is reportedly preparing to invest in a dollar-denominated bond issue by a unit of the Shapoorji Pallonji (SP) Group. According to sources familiar with the matter, BlackRock is considering an initial investment ranging from $100 million to $200 million through an Asia-focused fund. This participation is expected to serve as a crucial “anchor,” reassuring other global investors regarding the group’s creditworthiness.
The debt issuance is being led by Goswami Infratech, a subsidiary of the SP Group. The company has laid out an ambitious plan to raise approximately $3 billion in total capital. Of this, between $750 million and $950 million is targeted via the dollar bond market, while the remainder is expected to be raised through rupee-denominated debt. Deutsche Bank has been appointed as the arranger for this private placement.
This fundraising effort arrives at a critical juncture for Goswami Infratech. The company’s original plans faced delays due to a surge in rupee hedging costs, which eventually forced the firm to seek an extension on the repayment of high-yield debt that was initially due on April 30. The current bond issue is primarily intended to refinance existing notes worth ₹14,300 crore (approximately $1.51 billion) that were raised in June 2023.
The involvement of BlackRock comes just as the company faces regulatory and rating headwinds. Earlier this week, CareEdge Ratings downgraded Goswami Infratech’s bonds to B+ from BB-, citing delays in the group’s broader fundraising initiatives. Analysts suggest that the “BlackRock effect” could help mitigate these concerns, signaling to the broader market that institutional appetite remains strong for SP Group assets despite recent liquidity pressures.
While the exact timing of the launch remains under wraps due to the private nature of the placement, sources indicate that other large international funds have also expressed intent to participate. If successful, this multi-billion dollar refinancing will provide the SP Group with the necessary breathing room to stabilize its capital structure and continue its long-term project execution. Neither Deutsche Bank, BlackRock, nor the SP Group have officially commented on the ongoing negotiations, but the transaction is widely viewed as a bellwether for international confidence in Indian private sector debt.
