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Realty major Lodha Group’s subsidiary Lodha Developers International has priced a $125-million tap of its 2020 bonds at a yield of 8.89 per cent, lowering its borrowing cost by 310 basis points or 3.1 per cent compared to earlier bond sale.
To retire debt
The company said that the tap proceeds will be used to pre-pay higher cost debt.
The original issue was done at a yield of 12 per cent.
The tap was done at a price of ₹106.25, at a premium to the original issuance. The bonds are listed on the Singapore Stock Exchange (SGX), the company said in a release.
The tap was intended to be of $100 million and received strong interest from global investors, especially real money accounts.
The total order book at final pricing was in excess of $320 million. On account of this strong interest, the deal was upsized to $125 million.
Lodha Developers International is rated B2/stable by Moody’s and B/stable by Fitch.
Both agencies have reaffirmed the rating following the bond tap announcement last week. Moody’s also announced that Lodha would benefit from high-cost-debt reduction via bond tap and government's affordable-housing push.
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