5 April 2024 – Ricardo Constructions, a company under the Shapoorji Pallonji Group, has finalized a debt arrangement of Rs 505 crore with Asia Pragati Strategic Investment Fund to propel its ongoing projects and settle existing debts. The investment, facilitated by PAG-managed Asia Pragati, will aid in the completion of residential developments and repayment of outstanding liabilities.
The transaction involves Ricardo Constructions issuing senior secured, unrated, unlisted bonds with a five-year tenure maturing in March 2029. Notably, the company has structured the bonds to include a 17.25% payment in kind (PIK), comprising a 12% coupon payment. The remaining differential may be fulfilled through fees or shares, as per sources familiar with the matter.
Proceeds from the debt raise will primarily be utilized to clear existing debts totaling Rs 405 crore owed to a Piramal group entity and HDFC Bank. Additionally, the remaining funds will be allocated towards the completion of a residential project in Mulund, Mumbai, which Ricardo Constructions took over after its initial launch by Nirmal Lifestyle in 2009.
This project, previously stalled, has been entrusted to Ricardo Constructions, with a revised deadline set by MahaRERA for completion by March 2026. To bolster the project’s execution, Shapoorji group entities SD Corporation and Honcho Properties have extended unconditional guarantees of Rs 600 crore and Rs 330 crore, respectively.
