Mon Nov 11 08:03:52 UTC 2024: ## SP Group Faces Setback as PFC Rejects Loan Request, Putting Debt Refinancing Plans in Jeopardy
**New Delhi, November 10, 2024:** The Shapoorji Pallonji (SP) Group’s plans to refinance a substantial debt of approximately 200 billion rupees ($2.4 billion) have hit a snag after state-run Power Finance Corporation Ltd (PFC) declined to extend a loan.
PFC Chairman and Managing Director, Parminder Chopra, confirmed the decision, stating that the lender had conducted due diligence and found the proposed project to be outside its usual areas of funding. The loan was initially expected to be around 20,000 crore rupees.
“We have decided not to go ahead with sanctioning the loan of Shapoorji Pallonji,” Chopra told analysts on November 8th. “Ultimately, the board decided not to go ahead with the loan,” she further elaborated to Bloomberg News.
With PFC backing out, SP Group is now forced to explore alternative financing options to repay its debts, including finding new consortium lenders or accessing global capital markets. The group had previously approached PFC for a loan of up to 15,000 crore rupees.
The decision comes after SP Group’s entity, Goswami Infratech, successfully raised 14,300 crore rupees last year through zero-coupon non-convertible debentures (NCDs) from prominent investors like Cerberus Capital, Varde Partners, Canyon Capital, Davidson Kempner, and existing lenders Deutsche Bank, Edelweiss Special Opportunities Fund, and Ares SSG.
SP Group, established in 1865 by Pallonji Mistry, is a prominent Indian conglomerate with a presence in diverse sectors like real estate, construction, infrastructure, solar power, and oil & gas services. The group has historical ties with the Tata Group.
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