Lodha group's UK arm raises over $200 million via bonds

THE Lodha group's UK subsidiary has raised over $200 million by issuing bonds in Singapore market to refinance part of its outstanding debt.

The issue had opened on February 27, with the bonds being listed on the Singapore exchange.

Lodha Developers International, a subsidiary of Mumbai-based Lodha Developers (renamed as Macrotech Developers), had proposed to offer $225 million (about Rs 16.11 billion) aggregate principal of senior secured notes maturing in 2023.

Sources said many global investors, including Allianz, Citi, UBS, and Fidelity, invested in the issue.

Lodha International will use the proceeds of the issue to refinance a part of its outstanding $324 million (about Rs 23.2 billion) senior notes maturing this month.

“Earlier this week, we raised £86 million in the UK. With these proceeds and additional cash flows from our UK and Indian businesses, we look forward to fully repaying our dollar bonds in March 2020,” Macrotech Developers MD & CEO Abhishek Lodha had said on February 27.

On Wednesday (4), Moody's Investors Service said that refinancing risk for Macrotech Developers continued to remain high, even as it might be able to meet its near-term debt maturity.

The Lodha group had made a foray into the London market in 2013, with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in Central London for over £300 million.

Macrotech Developers is India's largest residential real estate developer by sales and construction area.

The company has clocked net new sales of over Rs 70 billion in 2018-19, with collections of over Rs 90 billion. It delivered over 10,000 offices and homes in FY 2018-19.

In the first nine months of 2019-20, sales reached around Rs 50 billion, up 15 per cent from the corresponding period of the previous year.

The current debt of the group’s Indian business is around Rs 150 billion.

(PTI)