Suvita Real Estates, part of the Shapoorji Pallonji Group, is set to raise ?105 crore through a non-convertible debentures (NCD) issue with a 15-month tenure. This move aims to repay the company's existing debt. The NCDs offer a substantial return, nearly two-and-a-half times higher than risk-free rates, classifying them as high-yield or junk bonds. The bonds feature step-up pricing, where investors receive 17.25% interest for the first 12 months and 20.25% between the 13th and 15th months. Additionally, Suvita Real Estates reserves the right to redeem these bonds after 12 months. In case of default, investors are entitled to a 24% return. The company previously missed payments to Blackrock Asia Pacific Credit Opportunities Fund last September, and the proceeds from this NCD issue will be directed towards settling that debt. The secured listed bonds will be open for subscription on February 9, closing on the same day. The Shapoorji Pallonji group did not comment on this matter.
