A&O Shearman Advises SP Group on Private Credit Refinancing and $125m Raise

What A&O Shearman announced

On 23 October 2026, law firm A&O Shearman published a notice saying it had advised Eqyizen Investment Private Limited, part of the Shapoorji Pallonji Group (SP Group), on a USD 2.25 billion refinancing completed in July 2026. The notice also covers a further USD 125 million fundraising in September 2026.

The firm described the July transaction as one of the largest private credit transactions completed in India to date. Pallavi Gopinath Aney, co-head of the India Group at A&O Shearman, said the refinancing required a highly bespoke structure to align legal, tax and regulatory considerations across multiple jurisdictions. Kyungwon (Won) Lee, partner and regional co-head of U.S. capital markets and global ECM, said the deal brought together multiple funding sources and investor groups.

The notice does not name lenders, pricing or tenure for the September raise.

The July 2026 refinancing

The July fundraising was carried out by Eqyizen Investment through three-year zero-coupon rupee bonds yielding 18.95%. A Mauritius-based SP Group entity, Mercury Finance, raised USD 650 million through three-year dollar bonds carrying a yield of 14.50%. The bonds are secured against the group's Tata Sons shareholding, which is held through Cyrus Investments.

Reports on the size of the July deal differ, and the figures should be read separately:

• Rs 21,500 crore, about USD 2.25 billion, per BW CFO World and the A&O Shearman notice.
• Rs 21,500 crore, about USD 2.58 billion, per a Dealroom note.
• Approximately Rs 15,100 crore, or USD 1.6 billion, in rupee-denominated bonds, per Pulse2, citing Bloomberg.
• USD 2.7 billion through a bond issue by group entity Eqyizen Investments, with proceeds to refinance about Rs 14,500 crore of debt at Goswami Infratech, per Outlook Business.

Both tranches were fully subscribed, and the dollar issue was oversubscribed. About half of demand came from investors backing an SP Group financing for the first time. The issue closed for subscription in July 2026, with funding scheduled to complete on 20 July 2026.

The September 2026 raise

For September, SP Group is raising USD 125 million through a tap issue of its existing dollar bonds, along with about Rs 3,250 crore through unrated rupee bonds. The rupee money is meant to refinance about Rs 3,500 crore of bonds maturing at the end of September.

The notice attributes the USD 125 million to Eqyizen. Other reports say the dollar bond reopening was done by Mercury Finance, an SP Group unit. The dollar instrument is described as a zero-coupon bond maturing in July 2029, with a one-year option for Mercury to redeem it early.

Repayment deadline and extension request

A zero-coupon bond issued by the group's financing arm, Porteast Investment, carries a repayment of about 35 billion rupees (about USD 365 million) due on 30 September 2026. Bloomberg reported on 18 September 2026 that the group was seeking a three-to-six-month delay. Later reports say the group formally requested an extension to 31 October 2026. The liability was initially due in May 2025.

Tata Sons and the realty IPO

The Tata Sons stake is central to the group's debt plans. A proposal placed before the Tata Sons board at its meeting on 17 September 2026 envisages the sale of a portion of the SP Group's stake through a selective capital reduction over 18 months. The final structure has not been settled.

The group's real estate arm, Shapoorji Pallonji Real Estate (SPRE), had planned a first-phase IPO raising around USD 800 to 900 million through a stake of about 10 to 12%. Reports in early October 2026 say the group has put the realty IPO on hold, with group debt above Rs 55,000 crore. Reports say the group had earlier selected six investment banks for the listing.

What it means for buyers and investors

For investors in SP Group credit, the main issues are repayment dates, the Tata Sons stake and how the group's rupee bonds are priced. Commentary from Finimize suggests the market impact will show up less in the USD 125 million headline and more in how investors price SP Group's rupee credit as the 31 October deadline approaches.

An unnamed investor in the July rupee tranche said: "With this fund raise, the company is reducing reliance on a handful of lenders." Lapaas Voice reported that the refinancing bought the group time but did not eliminate the underlying debt.

None of the reports tie these financings to a specific real-estate project. This article therefore does not attribute any project, delivery timeline or Mumbai price effect to them.

What comes next

• 31 October 2026: the extension deadline for the Porteast Investment repayment.
• Tata Sons: the board proposal for a selective capital reduction over 18 months is still under discussion, and its final structure is not settled.
• Further dollar bond reopening: one report says the group may follow with another reopening later. No date has been given.
• Goswami debt: an August 2025 report said that if the Tata Sons stake sale does not go ahead, the group plans to start talks in November to refinance Goswami debt maturing in 2026.