SP Group Secures Anchor Approval for ₹22,000 Crore Refinancing

Shapoorji Pallonji Group got a key piece of its debt plan in place this week. Anchor investors – a group that includes global funds – agreed to extend relaxed loan-to-value ratios on pledged securities through September 30, the Economic Times reported.

That approval clears the runway for a ₹22,000 crore refinancing package being arranged by Deutsche Bank. The group intends to launch the transaction in early July. The remaining bondholders are expected to give their consent within days.

The LTV relaxation matters because it removes the threat of margin calls on the collateral backing the group's borrowings. Without it, a drop in the market value of the pledged shares could have forced accelerated repayments or forced sales, derailing the refinancing. Anchor investors holding a large chunk of those securities agreed to the softer terms, giving the group breathing room to close the new facility.

The refinancing addresses a wall of maturities coming due. SP Group has been working to restructure its debt load after selling assets and raising equity over the past year. The new Deutsche Bank-led facility will replace shorter-dated borrowings with a longer tenor, the report said.

For bondholders who haven't yet signed on, the calculus is straightforward. If they hold out, the refinancing could stall and the group would be forced to tap alternative funding at higher cost or sell assets into a weak market. The expected consent this week suggests most see the extension as the cleaner path.

SP Group’s debt profile has been a recurring concern in Indian credit markets. The group owns real estate and infrastructure assets alongside its construction and engineering businesses. A successful closing in July would mark the most significant liquidity event for the group since it sold a stake in its flagship property arm last year.