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New Delhi: Shapoorji Pallonji (SP) Group on Tuesday said its loan from Power Finance Corporation has a twin security structure, including a portion of the Tata Sons shares owned by the Mistry family.
Refuting reports that the loan from Power Finance Corporation (PFC) is a "bailout from default", the SP Group said the cash flows from its real estate franchise will ensure a full repayment of the loan over the tenor.
"We are fortunate to work with PFC over the last 9 months to craft a unique proposal, that has a twin security structure leveraging the strength of the SP Group's large real estate franchise, as well as a portion of the Tata Sons shares owned by the Mistry family," the group said in a statement.
Further it said, "this provides a security value in excess of six times of the loan value. The cash flows from the real estate franchise will ensure a full repayment of the loan over the tenor."
The entire proposal has been validated by reputed third party consultants, the group asserted.
The SP Group received a formal sanction letter post the approval of the PFC Board on June 14, 2024, it added.
The facilities raised by the SP Group from foreign lenders have also helped in the creation of infrastructure assets.
The group termed as "misleading" reports which called the refinancing of such loans which are being done well ahead of their scheduled maturity, in the routine course of business, as "a bailout from default" asserting it "is not only grossly inappropriate but also factually incorrect".
"We have always respected and have fully adhered to the process outlined by our lenders including PFC," the statement said.
Reports quoting sources had stated that the independent directors of PFC had questioned the recent Rs 15,000 crore loan to the SP Group.
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