Lodha Group’s U.K. Arm Launches $225-Million Bond Issue To Refinance Debt
Realty firm Lodha Group's U.K. subsidiary has launched a $225 million-bond issue in the Singapore market to refinance part of its outstanding debt.
The issue has been opened and the closing date will depend on market response, sources said. The bonds will be listed on Singapore exchanges. JP Morgan, UBS and CLSA are the merchant bankers for the issue.
Lodha Developers International, a subsidiary of Mumbai-based Lodha Developers (now renamed Macrotech Developers), proposes to offer $225 million, or about Rs 1,611 crore, aggregate principal of senior secured notes maturing in 2023.
The company would use the proceeds to refinance a part of its outstanding $324 million senior notes due to mature in 2020.
"Earlier this week, we raised £86 million in the U.K. With these proceeds and additional cash flows from our U.K. and India businesses, we look forward to fully repaying our 2020 dollar bonds in March 2020," said Abhishek Lodha, managing director and chief executive officer of Macrotech Developers.
In November 2019, Lodha had said that it had arranged $325 million to repay bonds maturing in March 2020 through infusion of funds from promoters, sale of commercial properties and refinancing against unsold inventories in London projects.
"Our $325 million bond pertaining to London business is maturing in March next year (2020). So we have arranged funds in advance to meet our obligations when bonds mature. About $155 million has been arranged through financing against unsold inventories in a London project, while another $110 million will be infused by promoters through family offices," Lodha had said.
Lodha Group entered into the London real estate market in 2013 with the acquisition of the 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 7,000 crore in 2018-19 with collections of over Rs 9,000 crore. It delivered over 10,000 offices and homes in FY 18-19.
In the first nine months of 2019-20, sales have reached around Rs 5,000 crore, up 15 percent from the corresponding period of the previous year. India business debt of the company is around Rs 15,000 crore.