Shapoorji Pallonji & Co, the construction division of the Shapoorji Pallonji Group, is in discussions with banks to raise approximately $300 million through a loan secured by shares and real-estate assets, sources familiar with the matter told Reuters.

The financing will likely be denominated in Indian rupees and backed primarily by equity in Afcons Infrastructure, along with other real estate holdings. The objective is to refinance existing borrowing—nationally, the funds were reportedly advanced by HDFC Bank under a term loan disbursed in March 2022, valued at roughly ₹22.5 billion. With repayment of its March 2022 HDFC Bank loan approaching, Shapoorji Pallonji is targeting an interest rate of around 15%, though final terms are still being negotiated. The group has yet to respond to requests for comment on the ongoing discussions.

The move follows a series of sizable private-credit initiatives over the past year aimed at tackling the conglomerate’s substantial debt burden. Earlier this year, the group—backed by a mixture of promoter stakes in Tata Sons and real estate collateral—secured record-breaking rupee-denominated bonds raising more than $3.3 billion at yields near 19.75%. And in May, it closed what was then the largest private-credit transaction in India, issuing zero-coupon bonds worth ₹298 billion (roughly $3.5 billion), featuring layered collateral including promoter equity and corporate guarantees.

These actions come as the SP Group navigates refinancing a wave of maturing debt—including obligations due this year and next—amounting to approximately ₹33,500 crore between March 2025 and April 2026.

The proposed new loan—with a lower interest rate and shorter tenor—would address near-term obligations while reducing borrowing costs. However, deeper structural solutions such as asset divestment, portfolio rationalisation, or even monetizing promoter-level stakes remain under consideration by analysts.

The success of this share-backed refinancing effort will be a key test of the group’s strategy to manage financial leverage through a phased approach that combines private credit, structured collateral arrangements, and incremental deleveraging measures.