Deutsche Bank Leads $2.5 Billion Shapoorji Pallonji Bond Placement

Shapoorji Pallonji’s latest bond issuance, totalling roughly $2.5 billion (about ₹14,500 crore), wrapped up this week with a mix of foreign and domestic investors snapping up the securities.

The biggest piece of the puzzle came from German‑based Deutsche Bank, which pledged $644 million – roughly ₹6,210 crore – making it the single largest subscriber. Close behind were U.S.‑focused investors: Sageoak Capital put in $196 million, Cerberus Capital Management added $173 million via a Morgan Stanley Asia‑run fund, while Burlington Loan Management and Varde Holdings each contributed just over $100 million.

On the home‑shore front, domestic players took smaller slices. DSP Investments purchased $36 million of bonds (about ₹350 crore) and its promoter Hemendra Kothari invested $13.45 million personally. IIFL Management Services added another $7.24 million.

The issue was launched by Eqyizen Investments, a special‑purpose entity owned by the Shapoorji group. Proceeds are earmarked primarily to refinance the group’s high‑cost legacy debt – notably the maturing notes of Goswami Infratech – and to replace an older tranche of borrowings.

In parallel, an offshore tranche of $641 million was sold through Mercury Finance Company, a Mauritius‑based SPV controlled by Shapoorji Pallonji. The SPV subsequently funneled the entire amount back to the group, reinforcing its liquidity buffer.

While the bond size was substantial, the financing also carries a strategic angle. The Shapoorji group owns an 18.37 % stake in Tata Sons, which some investors view as a potential source of future cash should Tata decide to go public. The group has hinted it could monetise a slice of this holding to satisfy RBI’s capital adequacy guidelines, although the timing and certainty of such a listing remain speculative.

Overall, the bond placement is a lifeline for Shapoorji Pallonji, allowing it to sidestep near‑term default risks and stretch out its debt profile. With a strong backing from both global banks and niche investors, the company now has a clearer runway to manage its obligations.

Attempts to reach Shapoorji Pallonji for comment went unanswered at the time of publication.