An Indian property firm is set to sell the country’s biggest ever low-grade local-currency bond next week, a rare offering in a market dominated by corporate debt with top credit ratings.
(Bloomberg) — An Indian property firm is set to sell the country’s biggest ever low-grade local-currency bond next week, a rare offering in a market dominated by corporate debt with top credit ratings.
Goswami Infratech Pvt., a Shapoorji Pallonji group company controlled by billionaire Shapoor Mistry, is seeking bids on Monday for notes due in April 2026 to raise as much as 143 billion rupees ($1.7 billion), according to people familiar with the matter. The planned zero-coupon bond is rated BBB- by Care Ratings and carries a yield of 18.75%, said the people who requested anonymity discussing private matters.
A Shapoorji Pallonji Group’s spokesperson didn’t immediately reply to an email seeking comment.
The offering comes at a time when investors are turning bullish on India’s credit market as a strong economy and improved corporate balance sheets have alleviated concerns about repayment risks. Also aiding sentiment is an Indian central bank that has joined most global peers in pausing interest-rate hikes as inflation eases.
Goswami Infratech, which invests in real estate, is a joint venture between SC Finance Investments Pvt. and SP Finance Pvt., which are both controlled by the Mistry family.
–With assistance from P R Sanjai.
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