Lodha Developers to raise nearly 1,600 crore via offshore bonds

Lodha Developers is raising about $225 million (Rs 1,600 crore) by selling bonds to global investors, as the real estate company aims to refinance its five-year debt maturing in March. It may face higher cost on the fresh issue than on the existing debt amid tight market liquidity condition in the sector. JP Morgan is the lone banker for now helping the company raising the money. “Following discussions with various investors, we intend to raise approximately $225 million through a new bond to be issued in the next few weeks,” a company spokesperson said. “The pricing and other details of the bond will be determined at time of issuance.” JP Morgan declined to comment. “Investors are likely to seek double-digit yields for the proposed bonds amid risk aversion,” said an executive from a fund house. Globally, $11 trillion worth of sovereign papers are yielding negative returns. While the terms on pricing and maturities are yet to be finalised, the bond may have maturities in the range of three to five years. The issue may open for subscription before the end of this financial year on March 31.