SC Lowy, the Hong Kong-based hedge fund, has invested in the debt of two projects recently. It had bought Rs 275 crore rupee bonds issued by Pune-based real estate developer Pharande Township and Rs 100 crore in the Srinagar-Banihal Expressway.
An alternative investment fund backed by SC Lowy has invested in non-convertible debentures (NCD) in the last week of March. While Pharande NCDs do not pay any interest up to June 30, 2024 and 14% until maturity on March 31, 2026, Srinagar Banihal has offered 16% on the NCDs. The proceeds will be used for loan repayments and for working capital, a source said.
In case of Srinagar Banihal Expressway Ltd, a subsidiary of Ramky Infrastructure, the proceeds from the NCDs will be used by SBEL to repay an inter-corporate deposit.
“Both the deals closed in the last week of March,” said a source.
A SC Lowy spokesperson did not respond to a request for comment.
SBEL had finalised a one-time settlement agreement in March 2023 with its asset reconstruction companies (ARCs) for Rs 1195 crore and interest at 11.25% per annum, with a minimum interest payment of Rs 50 crore on the amount.
In a stock exchange notification, Ramky Infra, the parent company of SBEL had said that SBEL, has issued Rs 300 Crores of 16% Secured, Unlisted, Unrated, Redeemable, Non-convertible Debentures (NCDs) to two investors, one of whom is a member of its promoter group. The proceeds from these debentures are utilised to repay part of the outstanding Inter Corporate Deposit (ICD) borrowed from a promoter group member. This repayment facilitates the settlement of One Time Settlement obligations with previous lenders, due by January 31, 2024.
By December 31, 2023, SBEL had paid Rs 679 crore. It had obtained an extension from the ARCs- Asset Reconstruction Co (India) Ltd and Pridhvi Asset Reconstruction, pushing the repayment deadline to January 30 and 31, 2024, for the remaining Rs 516 crore. The company settled the remaining amount with accrued interest in January 2024, clearing all dues to ARCs, according to a stock exchange announcement.
Regarding NHAI deductions from annuity, the company had said that a total of Rs 248 crore, for issues like substandard steel and high embankment deviation, SBEL is yet to receive this amount. “Steps have been initiated to recover these deductions from NHAI, with confidence in full recovery based on assessments” the company has said.
