Key Takeaways
- Mercury Finance, a unit of Shapoorji Pallonji Group, is issuing $125 million in U.S. dollar bonds.
- The funds will be used to meet a payment obligation of another subsidiary, Porteast Investment.
- The real estate conglomerate plans to invest the proceeds in rupee-denominated bonds.
An unit of India’s Shapoorji Pallonji Group, Mercury Finance, is raising $125 million through the reissue of a U.S. dollar bond maturing in nearly three years, as reported by sources aware of the matter.
Mercury Finance will raise the funds by reopening its zero-coupon dollar bonds due July 2029, with the company retaining the right to redeem them after one year, according to the sources.
The real estate conglomerate plans to use the proceeds to invest in rupee-denominated bonds to be issued later by a local group entity, as stated by the sources.
The dollar sale would be followed by another reissuance, indicating a strategic approach to managing financial obligations.
The funds arising from this dollar-rupee fundraising deal will be used for meeting a payment obligation of Porteast Investment, another subsidiary, which is due to pay around 35 billion rupees for debt raised in May 2025.
Porteast Investment has sought an extension to the deadline to October 31, highlighting the urgency of the financial situation.
In July, Mercury Finance raised $650 million, which was invested in rupee debt sold by Eqyizen Investment, whose bonds are secured by SP Group’s stake in Tata Sons, held through Cyrus Investments.
The outlook for SP Group’s debt has improved after Tata Trusts, Tata Sons’ controlling shareholder, said earlier this month that SP Group had proposed selling 250 billion rupees worth of its stake.
