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Investors Likely to Grant Shapoorji Pallonji Unit Bond Grace Period
17 Apr
Summary
- Goswami Infratech seeks two-month extension for 83.43 billion rupee debt.
- Bond repayment delay stems from rising rupee hedging costs.
- Investors are expected to approve the extension without demands.
Goswami Infratech, a unit within India's Shapoorji Pallonji Group, is poised to receive a two-month extension for its bond repayments. Investors have likely agreed to push the maturity date to June 30 from April 30, as confirmed by sources. This request comes as the company faces challenges in securing its planned multi-billion dollar funding.
The company had initially raised 143 billion rupees in June 2023 through bond sales to foreign private credit funds. Following partial prepayments, the outstanding debt now stands at 83.43 billion rupees. Investors are expected to approve the extension without seeking additional yield.
Goswami Infratech's broader financing plans, which include raising between $2.8 billion and $3.1 billion, have been hampered by a surge in rupee hedging costs. This has particularly affected its efforts to issue new U.S. dollar-denominated and rupee-denominated zero-coupon bonds.
