Shapoorji Pallonji Group to Raise 2.5B USD for Debt Reduction

The Shapoorji Pallonji (SP) Group, one of India’s oldest and most respected construction and real estate companies, is working to raise $2.5 billion to pay down its heavy debt.

According to sources familiar with the matter, the funds could come through a combination of international bonds and bank loans, with the deal possibly closing in early 2026.

The group, known for building iconic projects like Mumbai’s Trump Tower and holding a major stake in Afcons Infrastructure, currently carries more than $4 billion in debt.

Much of this built up during years of rapid growth before the pandemic, followed by project delays due to supply chain issues and regulatory challenges.

Its real estate division alone owes over ₹15,000 crore, putting pressure on the company to refinance existing loans.

Key Highlights

• Shapoorji Pallonji Group plans $2.5B fundraise to cut debt and boost growth
• SP Group to raise $2.5B via loans, green bonds led by JP Morgan, HSBC
• Shapoorji Pallonji aims to slash $4B debt with $2.5B global funding drive

JP Morgan and HSBC are leading the effort, arranging a $1.5 billion loan from international lenders and a $1 billion green bond sale. A senior SP official, speaking anonymously, said the move will help “strengthen our finances and free up money for new, sustainable projects.” The bonds are expected to offer 7-8% returns and will target investors in Asia and the Middle East.

This comes at a time when India’s real estate market is recovering strongly, though higher interest rates have made borrowing more expensive. Experts see SP’s plan as a sign of discipline. “Cutting debt will give them more flexibility to grow in a smarter way,” said Karan Mehta, real estate analyst at Colliers India.

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If successful, the fundraising could lower the group’s debt burden significantly, allowing it to focus on eco-friendly homes and modern townships. While risks remain—such as rising global borrowing costs—the move reflects SP’s determination to stay strong in a fast-changing market.