Shapoorji Pallonji gets binding bids for biggest India private debt deal

At least a dozen funds have emailed their commitments as of last week

A group of private credit funds has given binding commitments to Shapoorji Pallonji Group, which is raising as much as $3.3 billion in what could be the country’s biggest private credit deal, according to people familiar with the matter.

At least a dozen funds have emailed their commitments as of last week with Ares Management Corp, Cerberus Capital Management LP, Davidson Kempner Capital Management, and Farallon Capital Management committing the largest amount, said the people, who asked not to be identified because the matter is private.

The funds will be raised through local currency bonds with a three-year tenor and negotiations on the final coupon are ongoing, they said. The deal is expected to close in the next three to four weeks, they added.

Deutsche Bank is the sole arranger for the deal and proceeds will primarily be used to refinance existing debt.

Shapoorji Pallonji Group did not immediately reply to a request for comment. Ares, Cerberus, and Farallon also did not immediately reply to Bloomberg’s emailed queries. Deutsche Bank and Davidson declined to comment.