SP Group Eqyizen Raises $460 Million in Bonds

The bonds were sold at a yield of 18.95%, underscoring how expensive funding remains for the group even after sentiment around its credit improved earlier this month. That improvement followed a report that Tata Trusts, the controlling shareholder of Tata Sons, said SP Group had proposed selling 250 billion rupees of assets, an indication investors are watching for asset monetisation to support debt reduction. SP Group subsidiary Mercury Finance recently tapped the market too, raising $125 million through zero-coupon dollar bonds due July 2029, reinforcing the broader refinancing push.

For creditors and bond investors, the deal is a mixed signal. On one hand, SP Group is still accessing capital markets despite its leverage, which helps reduce near-term default risk. On the other, the double-digit yield and zero-coupon structure point to stress, with lenders demanding steep compensation for duration and credit risk. The fact that Eqyizen had also raised 213.5 billion rupees in another issue at the same yield in July suggests the group is relying on repeated, expensive market access rather than a single clean deleveraging event.

That leaves the central question for investors whether SP Group can convert financing into balance-sheet repair. Asset sales, if they proceed, would be the clearest route to easing pressure across the group’s real estate and infrastructure holdings. Until then, the refinancing keeps the company solvent, but at a price that highlights how constrained its capital structure remains.