Yield on Goswami Infratech’s Rs. 14,300 Cr NCDs rises from 18.75% to 22%
Goswami Infratech issued rupee-denominated zero-coupon NCDs to investors like Deutsche Bank, backed by group-level monetisation events for debt reduction.
had issued these rupee-denominated zero-coupon in June 2023, maturing in April 2026, to investors like , , , , , and Ares SSG. These were subsequently sold to domestic high-net-worth individuals (H&Is) through wealth management funds.Goswami Infratech's NCDs are secured by group-level monetisation events, such as the of the Gopalpur port to Adani Ports and the potential listing of Afcons Infrastructure Limited, where GIPL holds compulsorily convertible preference shares (CCPS). These are expected to facilitate reduction and lower refinancing requirements. The NCDs are backed by a credit support undertaking from Cyrus Investments Pvt. Ltd., which has pledged its 9% holding in Pvt. Ltd. (TSPL), with another 9% pledged by Sterling Corporation.
The is currently negotiating with state owned lender PFC to roll over part of the Rs. 20,000 crore debt it raised through SIPL in 2021 from Ares and Farallon at an initial rate of 22%, which could rise to 28% if not refinanced promptly. This proposed fundraising has triggered the MFN clause in Goswami Infratech’s NCDs, resulting in an early redemption event. Investors have approved an extension until September 2024.
The SP Group has leveraged its entire 18.5% stake in Tata Sons to secure funding from private credit funds and plans to $2 billion in debt by rolling over the pledged TSPL shares. However, Tata Trusts, which holds a 66% stake in TSPL, is concerned about potential litigation with over enforcing the security if the SP Group defaults. The CEO of Tata Trusts has asserted that TSPL shares are not freely transferable, casting doubt on the enforceability of the pledge, according to an Economic Times report. However, the SP Group argues that it is within its rights to the shares, which have been pledged previously.
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Source: Stocks-Markets-Economic Times
