MUMBAI: Suvita Real Estates, a Shapoorji Pallonji Group company, plans to raise ₹105 crore in non-convertible debentures (NCD) of 15 months to repay its existing debt, said people with knowledge of the matter. The returns offered – at nearly two-and-a-half times the risk-free rates – would qualify the bonds to be labeled high-yield on junk.
The bonds have step-up pricing such that the real estate company will pay investors 17.25% for 12 months and 20.25% between 13 and 15 months, stated a term-sheet circulated by the company. At the same time, the company will have the right to redeem the bonds at the end of 12 months. In the event of default, the company will pay 24% to the investors.
The company missed payments due to Blackrock Asia Pacific Credit Opportunities Fund last September. Proceeds from these bonds will be used to repay that debt. The secured listed bonds issue will open for subscription on February 9 and close on same day. SP group did not respond to ET’s request for comments.
