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India's Shapoorji Pallonji Group has secured investor commitments of more than $4 billion for its debt sale in April, surpassing its funding target, two sources familiar with the matter said on Friday. The group, which caters to sectors including construction and real estate, plans to raise $3.2 billion to $3.3 billion through the bond issue, with private credit funds expected to account for a bulk of the subscriptions, the sources said. Foreign private credit funds Ares Management and Farallon Capital Management are likely to be the largest investors for the issue, while Cerberus Capital Management, Davidson Kempner Capital Management, One Investment Management and Varde Partners are among other big investors, they said. Altogether, the investors may bid for 50%-75% of the issue, the sources added, requesting anonymity as they are not authorised to speak to the media. The bond will likely have a maturity of about four years, with a pre-payment clause of redemption within three years, effectively reducing the maturity. "The coupon on the bond issue is close to being finalised between 18% and 20%," one of the sources said. "This yield is very lucrative and is drawing heavy interest from private credit funds." The bond is expected to be secured by shares of Tata Sons that are held by the group through Sterling Investment Corp, they added. Deutsche Bank is the sole arranger for the deal. The proceeds will primarily be used to refinance existing debt, the sources said. Shapoorji Pallonji Group, Cerberus Capital Management, One Investment Management, Varde Partners and Farallon Capital Management did not respond to an email seeking comment. Deutsche Bank, Davidson Kempner Capital Management and Ares Management declined to comment.

The Reserve Bank of India has urged the CEO of IndusInd Bank and his deputy to step down after significant accounting lapses as soon as replacements are found and the central bank has approved them, according to four sources familiar with the conversations.Read More: 'Factually incorrect': IndusInd Bank refutes media report on CEO, deputy stepping down after accounting lapses IndusInd is India's fifth largest private lender, with a 5.4 trillion rupee ($63 billion) balance sheet. On March 10 it disclosed that its derivatives portfolio was overvalued by around 2.35% - about $175 million - after non-compliant internal trades. The bank, headed by Sumant Kathpalia, has appointed external investigators. His deputy, Arun Khurana, also heads the global markets division, which includes the derivatives portfolio. The RBI made clear that it had lost confidence in the top executives, but that it wanted an orderly transition to avoid unnerving depositors, said one of the sources, briefed by top management. A second source said the RBI, which only recently approved a one-year extension for Kathpalia, had also made clear that it wanted the candidates to come from outside IndusInd. While a bank's board makes recommendations for top executive positions, RBI approval is required. The central bank is known to offer informal advice to lenders facing governance or financial concerns that it would prefer an external candidate. After the discrepancies were disclosed, the RBI issued a statement assuring depositors that the bank was well capitalised. Emails sent to the RBI, IndusInd Bank, Kathpalia and Khurana were not answered. The sources said the accounting discrepancy - which contravened RBI rules introduced only in April 2024 - did not appear to be an industry-wide problem. The first source said it was a clear issue of lack of oversight, and another source said it had come to light in September 2024 when it was flagged to Kathpalia. Moody's Ratings on March 17 put the bank's rating on review for possible downgrade. "The discrepancy in the accounting shows weakness in the bank's risk management, compliance and reporting and persistent weaknesses in these areas could weaken IndusInd's reputation, and hence its funding and liquidity," it said. IndusInd Bank shares have tumbled over 30% this month.