India's Shapoorji Pallonji Group is seeking investor approval to push back the maturity of debt issued by its real estate and civil engineering unit Goswami Infratech, three sources familiar with the matter said on Monday.
The proposal aims to extend the maturity of high-yield notes that are currently set to mature on April 30, the sources said, asking not to be identified as they are not authorised to speak to the media.
Goswami Infratech has been looking to raise $2.75 - $3.1 billion for the last few months, a refinancing plan that has been delayed by a surge in rupee hedging costs after India's central bank introduced measures to clamp down on speculative trades in the currency as the war in the Middle East fanned market volatility.
Of this, around $500 million-$1 billion will be raised via U.S. dollar-denominated bonds, while the remaining will be raised through rupee-denominated zero-coupon bonds, one of the sources cited above said.
The funds are being raised to refinance the high-yield notes currently set to mature on April 30, which according to local rating agency Care Ratings have an outstanding amount of 83.43 billion rupees ($894.02 million).
"The initial plan was to close the (up to $3.1 billion) deal by April 10, but because of higher hedging costs the issue has to be pushed till May-June," one of the sources said.
One of the sources added that the current stress seen in U.S. private credit has also made investors cautious, contributing to the group's decision to push back refinancing Goswami Infratech's debt.
Shapoorji Pallonji Group did not immediately respond to an email requesting comment.
In January, the SP Group had said Goswami Infratech will refinance its bonds well ahead of their due dates and based on feedback and in-principle interest from investors, the transaction would be at substantially tighter pricing, reflecting an improved credit profile.