Lodha Developers hits the road with $100 million issue

By: Bhavik Nair | Mumbai | Published: November 22, 2017

Lodha Developers International is hitting the road with a $100 million bond issue. The company will conduct roadshows in Singapore, Hong Kong and London to market the dollar bonds, starting Wednesday. The bonds are an extension of its debt issued in 2015, sources aware of the deal told FE. The roadshows will continue till Friday and the bonds are likely to be priced next week, bankers indicated. In 2015, the company had raised $200 million via dollar bonds at a coupon rate of 12%. The forthcoming issue is a tap of the existing bonds which will mature in 2020. These bonds were quoted at a yield of 7.69% on Monday, according to Bloomberg data. Bankers say the tap issue might be priced in such a way that the yield looks a bit more attractive for investors. JP Morgan, CITIC CLSA Securities and UBS are the bankers to the deal.
Moody’s Investors Service said in a release that Lodha Developers Private’s announcement of the tap bond offering by its wholly owned subsidiary Lodha Developers International is credit positive, but has no ratings impact. “LDPL is focused on residential development in the Mumbai Metropolitan Region, with some projects in Pune. The company and its promoters have expanded into the London market by acquiring two properties that are now in the process of development,” Moody’s said. A banker pointed out that the company will use the proceeds to refinance its Rupee debt, which it had taken earlier for its London projects. The company could not be immediately contacted to confirm the story. “The refinancing will also lower LDPL’s interest costs — due to the higher interest rates of the debt that is being refinanced,” said Saranga Ranasinghe, assistant vice-president and analyst at Moody’s. When the 12% notes were first issued by Lodha Developers International, it was rated Ba3 by Moody’s. However, the ratings agency downgraded these bonds twice over the last two years. In May 2016, Moody’s downgraded the bonds to B1 from Ba3.

Reference

Comments

Post a Comment

Popular posts from this blog

India Joins Russia in Voting Against West-Backed Move to Expand Powers of OPCW

The Wire: June 28, 2018 New Delhi: India voted against a UK-backed move that will allow the global chemical weapons watchdog to apportion blame for illegal attacks, criticising the decision to grant “unchecked powers” to the head of the group which could be used for “partisan” purposes. On Wednesday, more than two-thirds of the member states of the Organisation for the Prohibition of Chemical Weapons (OPCW) voted to authorise the international body to identify the perpetrators and sponsors of a chemical weapons attack. It also specifically called on the OPCW’s technical secretariat to begin work on identifying the perpetrators behind the use of chemical weapons in Syria. The draft decision, sponsored by 30 countries, was adopted at the fourth special session of the conference of the states parties to the Chemical Weapons Convention at the Hague, with 82 in favour and 24 negative votes. While Europe, the United States and their allies voted ‘yes’, there was strong oppo...
Read more

As financial insecurity rises in urban India, so does investment in insurance

Image
Scroll.in March 13, 2020 Urban Indians are becoming less confident about their financial security. Up to 58% of them fret over financial independence post retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working. The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020. Source: Max Life Insurance via Quartz The trends Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family sav...
Read more

ED tracks Swiss Bank A/Cs of Agusta scamster

The Poineer February 10,2019 Rakesh K Singh The Enforcement Directorate (ED) has tracked a dozen Swiss bank accounts in the name of Rajiv Saxena, who is key accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. The ED has also found out accounts held by  his family members and associates where the kickbacks in the now scrapped deal were allegedly parked. Two bank accounts are in the name of Rajiv Saxena’s  associates Pankaj Jain and Sumita Jain who are also the authorised signatories. The  third is in the name of another associate Ajit Singh Bubber, but Rajiv and his family members are authorised signatories. The remaining nine accounts are largely owned and operated by Rajiv, his family members and associates. Rajiv Saxena was deported by the UAE authorities on January 30 and the ED formally arrested him the next day and a court later granted his remand to the agency. He is currently undergoing custodial interrogation by the ED. The agency had in 2017...
Read more