The fundraising is expected to close by Thursday, the people said.
The group informed bondholders last week that it will make the payment by October 1.
Bond yields in India are anticipated to increase in the latter half of this fiscal year. This rise is primarily due to higher government borrowing and ongoing inflationary pressures. Analysts expect demand for government securities to fall significantly short of supply. The trajectory of bond yields will also be heavily influenced by oil prices, particularly if crude stays high.
The $125 million bond is a tap of the group’s existing three-year dollar notes issued in July 2026. The bonds will carry a 14.5% coupon and have a remaining tenor of about two years and 10 months. The yield to maturity is around 14%, the people said.
A SP Group spokesperson didn’t respond to a request for comment.
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Yields on SP Group’s dollar bonds have tightened by about 50 basis points since the Reserve Bank of India rejected Tata Sons’ application to voluntarily surrender its registration as an upper-layer non-banking financial company, the people said.The group is also raising about ₹3,250 crore through unrated rupee-denominated debt at a yield of 18.95%, with a similar remaining tenor of two years and 10 months.
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This July, Eqyizen Investment, a group entity, had raised ₹15,200 crore through three-year zero-coupon bonds at a yield of 18.95%, while Mercury Finance had raised $650 million through bonds carrying a 14.5% coupon.
The funds will be used to refinance bonds issued by the SP Group’s financing arm Porteast Investment. Porteast had raised ₹28,500 crore through NCDs in May 2025, with the bonds priced at 19.75%.
The fundraising exercise saw strong demand, with the issue significantly oversubscribed, leading the group to scale back investor allocations, the people said.
