Indian construction and real estate giant Shapoorji Pallonji Group has secured $3.4 billion in financing through what is reportedly the largest private credit transaction ever in India, according to sources familiar with the matter.
The funding was raised via zero-coupon rupee-denominated bonds with a three-year maturity and an effective yield of 19.75%, the people said, speaking on condition of anonymity due to the confidentiality of the information.
The deal attracted around a dozen global investors, some of whom subscribed through multiple funds. Major participants include Ares Management Corp, Cerberus Capital Management, Davidson Kempner Capital Management, and Farallon Capital Management. Deutsche Bank acted as the sole arranger and also invested significantly in the offering.
Deutsche is said to have committed approximately $900 million, with plans to syndicate part of the debt. Cerberus and Davidson Kempner are believed to have invested $475 million and $425 million, respectively.
Domestic investors also joined in. Notably, ASK Wealth Advisors, several family offices, and EAAA India Alternatives Ltd.—one of India’s largest homegrown private credit funds—participated. EAAA is said to have taken a $85 million position in the bonds.
This financing marks a milestone for India’s private credit market, which is expanding rapidly in response to growing capital demand. Prime Minister Narendra Modi’s infrastructure agenda, including investments in renewable energy and transport, is fueling this shift as traditional lending avenues face constraints.
A spokesperson for Shapoorji Pallonji Group did not immediately respond to requests for comment. Davidson Kempner declined to comment, while other investors, including Ares, Cerberus, Farallon, EAAA, and ASK, did not immediately reply to inquiries from Bloomberg.
