Lodha subsidiary plans $100-million overseas bonds
Realty developer Lodha Group’s wholly-owned subsidiary Lodha Developers International is raising around $100 million through an overseas issue of bonds. The proceeds will help repay intra-group debt due from its London projects to Indian operations. This is the second offshore fund raising by an Indian company after international rating agency Moody’s Investors Service upgraded India’s sovereign rating to Baa2 from Baa3 and changed the outlook to ‘stable’ from ‘positive’.
The developer, through this refinancing, may lower its borrowing costs by 25 to 75 basis points, bond dealers said. JP Morgan, UBS and Citi are some of the investment bankers said to be helping the developer raise funds.