Loan from PFC backed by security of 6X loan value: Shapoorji Pallonji

economictimes.indiatimes.com:

Shapoorji Pallonji group will provide security cover of six times the loan value it will obtain from Power Finance Corporation, the company said in a press statement on Tuesday.

“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 Son’s shares owned by the Mistry family”, said Venkatesh Gopalakrishnan, director, group promoters office, Shapoorji Pallonji.

“This provides a security value in excess of 6 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 statement was issued as media reports stated that the company was not providing adequate security cover for the loan it was obtaining from PFC and that certain independent directors of the state-owned lender had raised questions about the loan proposal.

“The SP group received a formal sanction letter post approval of the PFC board on 14 June”, the statement said.