MUMBAI: SD Corporation, a wholly-owned company of Shapoorji Pallonji Company, rescheduled coupon payments on its ₹750 crore bonds by two months to March 31, 2024, with an agreement that it will deposit the coupon in an escrow account a day before the due date, said people with knowledge of the matter. The company is engaged in the redevelopment of old residential buildings and colonies in Mumbai.
The company has scheduled a coupon payment on 5.5% unlisted senior secured bonds of ₹750 crore due on January 31, 2024. Under the revised terms, the bondholders have agreed to reschedule the coupon payment to March 31 at 12% which will be payable half-yearly, the people cited above said.
The existing bondholders have also agreed to reschedule the principal repayment from December 2024 to March 2025.
SP group did not respond to ET’s request for comments.
These bonds were raised in 2019 and at that time Franklin Templeton Mutual Fund was one of the investors. However, it is likely the mutual fund would have sold the bonds in the secondary market over the last few years. They are backed by irrevocable credit enhancement in the form of a put option provided by Sterling Investment Corporation (SICPL), which holds a 9.185% stake in Tata Sons, the holding company of the Tata group.
The revised terms also have a ‘structured payment mechanism’ which stipulates that in case there is a shortfall or delay in payment by SD Corporation (which is one day prior to the due date), SICPL shall deposit the necessary amounts in the designated account to meet the debenture payments on or before the due date.
SD Corporation is a 50:50 joint venture between the SP Group and the Dilip Thacker Group (held by Diljay Trading LLP). The company is in the process of developing flagship residential projects at Kandivali and Versova in suburban Mumbai and the third tower of the Imperial Towers project in south Mumbai.
The parent company Shapoorji Pallonji has guaranteed ₹14,300 crore debt raised at various promoter-level companies as of December 31, 2023, according to Care Ratings. The SP group plans to prepay the debt monetisation of certain assets and from proceeds of dividend income, it added.
