Lodha Group’s UK arm repays dollar bonds worth Rs 2,550 crore

March 17, 2020

MUMBAI: Lodha Developers International, a wholly-owned subsidiary of Macrotech Developers, has repaid its March 2020 US dollar bonds worth Rs 2,550 crore along with accrued interest thereon through combination of newly raised funds and cash flows from projects.

The repayment was partly funded by its recently raised $200 million or Rs 1,470 crore through a US dollar bond issue. After raising this amount in Senior Secured Notes due 2023 last week, the developer increased the size of this new bond by $25 million on Monday.

The company had earlier raised 86 million pounds or Rs 800 crore in the UK. In addition to this, the proceeds and additional cash flows from the company’s UK and India businesses around Rs 900 crore also supported the bond repayment.

The new fund raising exercise concluded last week was managed by JP Morgan, UBS and CLSA.

“We were always confident of being able to meet our $325 million bond repayment obligations and have completed all requirements and payments for the bond to be repaid in full along with accrued interest. Despite the economic slowdown in India which has been further compounded by factors like Coronavirus and the oil price shock, we have completed this obligation prior to the due date,” Abhishek Lodha, MD & CEO, Macrotech Developers.

The developer’s India operations had achieved sales of around Rs 5,000 crore for the first nine months ending December. In 2018-19, the company’s domestic sales stood at Rs 7,000 crore.

In January, US-headquartered alternative investment firm Varde Partners concluded acquisition of Lodha’s commercial building Lodha Excelus, New Cuffe Parade in Mumbai’s Wadala locality for over Rs 1,050 crore.

The group is looking to monetise additional assets to reduce its debt exposure, which is currently around Rs 16,000 crore. It is aiming to turn debt-free over the next 24 months with the help of momentum in sales performance mainly from its recently launched affordable housing vertical, Lodha had told ET in November.

Lodha Xperia Mall in Palava City, the company’s integrated township near Mumbai, is one of the two assets identified to be monetised, while the other asset will be from its around 9 million sq ft under-construction commercial portfolio in locations including Thane, Lower Parel and Andheri.

Source - Economic Times