Shapoorji Pallonji Set to Sign India’s Largest-Ever $3.4 Billion Private Credit Deal

Unknown Apr 02, 2026 1,250 Views

Indian conglomerate Shapoorji Pallonji Group is on the verge of finalizing a landmark $3.4 billion private credit deal, which would become the largest such transaction in India’s history. The deal, expected to be signed as early as Wednesday evening, marks a significant milestone for both t...

Record-Breaking Size:

The $3.4 billion debt agreement will be India’s biggest private credit deal to date, underscoring the growing appetite for alternative financing in the country’s corporate sector.

Major Global Investors:

About a dozen major investors are participating, including Ares Management Corp., Cerberus Capital Management LP, Davidson Kempner Capital Management, and Farallon Capital Management. Deutsche Bank is not only investing but also acting as the sole arranger and trustee for the transaction.

Deal Structure:

The funds will be raised through a three-year, zero-coupon rupee bond, offering an annual yield of 19.75%. The loan-to-value ratio is a conservative 16%, and funds are expected to be disbursed shortly after the deal is signed.

Purpose and Collateral:

Proceeds will primarily be used to refinance Shapoorji Pallonji’s existing debt, with various real estate properties and other assets pledged as collateral.

Strategic Context:

The deal comes as India’s private credit market gains momentum, driven by Prime Minister Narendra Modi’s infrastructure push and a $129 billion budget allocation for the sector. This transaction is expected to further deepen the private credit industry in India.

Regulatory and Financial Backdrop:

The group has worked to reduce its debt load through asset sales and previous high-profile fundraising rounds. The current deal is structured conservatively, with a low loan-to-value ratio, and is designed to comply with regulatory requirements for capital adequacy.

This record-setting transaction not only provides Shapoorji Pallonji with crucial refinancing but also signals the increasing role of global private credit in India’s corporate financing landscape.

Source: Economic Times, Bloomberg, Business Standard, Deccan Herald, Moneycontrol

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