homebusiness NewsShapoorji Pallonji Group may pledge shares in Tata Sons to raise $1.6 billion

Shapoorji Pallonji Group may pledge shares in Tata Sons to raise $1.6 billion

Bloomberg said that Deutsche Bank AG and Standard Chartered Plc are organising the private credit deal. Ontario Municipal Employees Retirement System, Varde Partners LP, Cerberus Capital Management LP and Farallon Capital Management LLC are also part of the discussions. 

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By CNBCTV18.com May 16, 2023 12:57:27 PM IST (Published)

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Shapoorji Pallonji Group may pledge shares in Tata Sons to raise $1.6 billion
Billionaire Shapoorji Mistry-led Shapoorji Pallonji Group is said to be in discussions to raise $1.6 billion via a private credit facility, Bloomberg has said quoting sources. The sources have told Bloomberg that the tenor of three years is being discussed, with a interest rate of double digital.

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Part of the money raised will be used to refinance existing loans.
It's being said that the group could pledge some of its shares in Tata Sons to raise the required capital. No official response has been provided by the group's spokesperson so far.
The engineering and infrastructure group is looking for ways to free up cash amid rising interest rates. Among the various options, the group is weighing asset sales, Bloomberg had reported earlier in April.
In 2022, the group sold the water purifier maker business Eureka Forbes to the Advent International. Additionally, the group divested Sterling and Wilson Renewable Energy to Reliance Industries. Shapoorji Pallonji Group repaid $1.5 billion to lenders.
Bloomberg further said that Deutsche Bank AG and Standard Chartered Plc are organising the private credit deal. Ontario Municipal Employees Retirement System, Varde Partners LP, Cerberus Capital Management LP and Farallon Capital Management LLC are also part of the discussions.

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