Deutsche Bank Sells Eqyizen Bonds Amid SP Group Debt Crisis

Deutsche Bank and other investors are offering rupee-denominated bonds of Eqyizen Investment, a Shapoorji Pallonji (SP) Group entity, at a premium. This activity follows a proposal by the SP Group to sell a portion of its stake in Tata Sons worth 250 billion rupees ($2.61 billion), an action announced by the controlling shareholder, Tata Trusts.

The SP Group, a debt-laden infrastructure and construction conglomerate, currently faces over 500 billion rupees in high-interest debt. Eqyizen Investment previously raised 213.50 billion rupees through three-year zero-coupon bonds in July at a yield of 18.95%. These bonds, which are secured by the SP Group's stake in Tata Sons via Cyrus Investments, are now being offered at yields between 18.70% and 18.75%.

Further financial pressure exists for the conglomerate's other entities. The SP Group is seeking an extension for a 35 billion rupee payment due September 30 for Porteast Investment, which holds 286 billion rupees in outstanding zero-coupon bonds.