The Shapoorji Pallonji group has secured a key regulatory waiver from the banking regulator, easing pressure on its landmark $3.4 billion private credit deal and averting an increase in the cost of that borrowing, according to a Bloomberg report quoting people familiar with the matter.
Sterling Investment Corp, the group’s non-banking finance unit, last week received a three-year extension from the RBI to meet the capital adequacy norms, the report said.
The extension gives the unit more time to comply with rules on the minimum cash buffers required for India’s shadow lenders.
Lenders required Sterling Investment — which pledged a 9.2 per cent stake in Tata Sons as collateral for India’s largest-ever private credit deal — to obtain the waiver by the end of September, or inject ₹60 billion in fresh capital, according to terms of the deal reviewed by Bloomberg.
A delay in securing the waiver could have raised the interest rate about 200 basis points above its current 19.75 per cent. It could have also triggered a default if 50.1 per cent of bondholders had demanded it, the terms show.
Representatives from the Shapoorji group and the RBI did not immediately respond to emails seeking comment, the Bloomberg report said.