By Dharamraj Dhutia and Khushi Malhotra
MUMBAI (Reuters) -India’s Goswami Infratech, a unit of Shapoorji Pallonji Group, is courting top global credit investors for an upcoming mega bond sale, two sources aware of the matter said on Friday.
The group met with investors including Pacific Investment Management Co (PIMCO), BlackRock and Vanguard during non-deal roadshows last week ahead of the bond issue likely to close by January-end, the sources said, requesting anonymity, as they are not authorised to speak to media.
Goswami Infratech, PIMCO, Vanguard and BlackRock did not reply to a Reuters email seeking comment.
The real estate and civil engineering company is planning to raise around 250 billion rupees ($2.8 billion) through a two-year zero-coupon bond issue, and is willing to offer a yield of 19.75%, the sources said.
The yield being offered on these notes is comparable to what another SP group entity Porteast Investment offered when it raised 286 billion rupees in the largest ever bond sale for India in May.
Talks are at an early stage and no investment commitments have been made so far, the sources added.
The funds will be used to refinance its outstanding 88.15 billion rupees in high-yield notes maturing in April 2026 and another loan, as well as for other debt-related and corporate purposes.
The company has already repaid more than a third of the earlier bond, according to Care Ratings, which maintains a BB- rating on the papers.
The new issue will be secured by the SP Group’s 9.2% stake in Tata Sons, held via its subsidiary Cyrus Investments.
(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Nivedita Bhattacharjee )
