MUMBAI: India’s Goswami Infratech, a unit of Shapoorji Pallonji Group, is set to outsize its previous corporate bond sale with a shorter-duration issue of about $2.5 billion in early 2026, three bankers aware of the matter said on Wednesday.
The real estate firm aims to raise as much as 220 billion rupees ($2.5 billion) to refinance its current issue, as well to meet other debt-related expenses, the bankers said, requesting anonymity as they are not authorised to speak to the media.
“The company will at least target 150 billion rupees, which would be the outstanding amount for its bond issue and mature in April on priority, but will be open for higher amount,” one of the bankers said.
Deutsche Bank, which had arranged the company’s previous debt issue, is set to be the arranger for this sale as well, the bankers added.
Goswami Infratech and Deutsche Bank did not reply to a Reuters email seeking comment.
The company will hold a non-deal roadshow in Singapore next week to brief prospective investors on its metrics, bankers added.
In June 2023, Goswami Infratech had raised 143 billion rupees through the sale of zero-coupon bonds at a yield of 18.75%, which was later hiked as the company was unable to meet some covenants.
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These notes are due to mature in April 2026, but also carry an early redemption or put option at the end of December 2025.
“The company is in the process of convincing existing investors not to exercise the put option and hold the debt till maturity, and most of the investors have agreed to it,” another banker added.
Goswami Infratech has repaid 54.85 billion rupees to the investors of this bond issue, with an outstanding amount of 88.15 billion rupees, according to Care Ratings, which has a BB- rating on these papers.
“Since it is a zero-coupon bond, the interest that the company will have to bear is very high, forcing them to target large ticket size issue and it may also have to pay higher yield,” the second banker added.
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