The Lodha group's British subsidiary launches a $ 225 million bond issue to refinance its debt

On Thursday, the British subsidiary of the Lodha real estate group launched a $ 225 million bond issue on the Singapore market to refinance part of its outstanding debt.

The issue has been opened and the closing date will depend on market reaction, sources said.

The bonds will be listed on the Singapore stock exchanges. JP Morgan, UBS and CLSA are the merchant bankers of the issue.

Lodha Developers International, a Mumbai-based subsidiary of Lodha Developers (which has been renamed Macrotech Developers), offers to offer $ 225 million (approx. 1611 crore Rs) in principal secured senior notes maturing in 2023.

The company would use the proceeds to refinance part of its $ 324 million outstanding senior notes (about 2,320 crore rupees) maturing in 2020.

"Earlier this week, we raised £ 86 million (Rs 800 crore) in the UK. With this product and additional cash flow from our UK and India operations, we are eager to repay fully our 2020 USD bonds in March 2020, "said Abhishek Lodha, MD and CEO, Macrotech Developers.

In November 2019, Lodha announced that it had arranged $ 325 million to repay bonds maturing in March 2020 through the injection of funds from promoters, the sale of commercial properties and the refinancing of unsold stocks in London projects.

"Our $ 325 million London business bond matures in March of next year (2020). We have therefore organized funds in advance to meet our obligations when the bonds while another $ 110 million will be injected by promoters through family offices, "said Lodha.

The Lodha group had made a foray into the London market in 2013 with the acquisition of the iconic MacDonald House at 1 Grosvenor Square in central London for more than £ 300 million (Rs 3,100 crore).

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

The company recorded new net sales of more than Rs 7,000 crore in 2018-19 with collections of more than Rs 9,000 crore. It delivered more than 10,000 offices and accommodation during fiscal years 18-19.

In the first nine months of 2019-2020, sales reached around Rs 5,000 crore, up 15% from the corresponding period of the previous year.

The India's commercial debt of the company is around Rs 15,000 crore.