LODHA SEEKS TO RAISE CLOSE TO $225 MILLION

MUMBAI: Lodha Group, one of India’s largest property developers, is in a race against time to raise close to $225 million (around ₹1,600 crore) by selling bonds to meet its debt repayment obligations due next year.

The group, which has renamed itself as Macrotech Developers Ltd, has been reaching out to overseas investors, including several existing ones, to raise funds, two people directly aware of the ongoing discussions said on condition of anonymity. As much as $325 million worth of bonds are maturing by March.

The Mumbai-based company, whose rating was downgraded recently by Fitch as well as Moody’s Investors Service because of its uncertain financial situation, is also in talks with a few existing bondholders in Singapore to explore opportunities for a potential roll-over, said one of the two people cited above.

The company may either use funds raised against its Lincoln Square project in London or through infusion of funds from promoters to repay the rest of the bond amount, said the two persons cited above.

A new bond issue is likely to be finalised in the next one month, the people mentioned above said.

In an emailed response, a spokesperson for Lodha said that the company has put in place arrangements for repayment of the $325 million bond issued for its international business.

“As we repay the existing bond, we will continue to explore new issuances in the bond market on the back of our stellar track record of timely servicing and repayment,” the spokesperson said.

Meanwhile, a few of its existing lenders and investors are said to be looking to trim their loan exposure to the company in the last few months.