Lodha Group’s UK subsidiary firm raises $200 million to pare debt

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NEW DELHI: Realty firm Lodha Group on Friday said its UK subsidiary has raised USD 200 million (around Rs 1,473 crore) through issuance of bonds in the Singapore market and the amount will be used to repay debt.

Lodha Developers International Ltd, a wholly-owned subsidiary of Mumbai-based Macrotech Developers (earlier known as Lodha Developers), closed its dollar bond-issue and raised USD 200 million in Senior Secured Notes maturing in 2023.

Lodha Developers International launched USD 225 million bond-issue on February 27. The bonds will be listed on the Singapore Exchange.

The proceeds will be used to fully repay its outstanding USD 324 million Senior Notes due on March 13, 2020, a company statement said.

“We closed the bond raise of USD 200 million with leading global investors. Several existing investors increased their position. Bankers to the deal were JP Morgan, UBS and CLSA,” said Macrotech Developers MD & CEO Abhishek Lodha.

Many global investors, including Allianz, Citi, UBS, and Fidelity, invested in this bond-issue, sources said on Thursday.

In addition to raising USD 200 million, the UK subsidiary had raised GBP 86 million (Rs 800 crore) last month.

Macrotech Developers made a foray into the London market in 2013 with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in prime Central London for over GBP 300 million (Rs 3,100 crore).

It is India”s largest residential real estate developer by sales and construction area.

From India business, Macrotech Developers 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 2018-19.

In the first nine months of 2019-20, sales have reached around Rs 5,000 crore, up 15 per cent from the corresponding period of the previous year.

The debt of India business is around Rs 15,000 crore.

Source: Press Trust of India