Lodha Group may sell bonds worth Rs 1,600 crore to repay debt: Report

Lodha Group, now christened Macrotech Developers, is planning to sell bonds to raise $225 million (equivalent of Rs 1,600 crore), reports Mint. The report states that the fund will help the property developer meet its debt repayment obligations due in 2020.

Moneycontrol could not independently verify the report.

In March 2020, the Mumbai-based company will see bonds worth $325 million maturing. Meanwhile, the report quotes sources as saying that the company is in touch with overseas investors for the fundraise. It is also approaching some of the existing investors in Singapore, sources added.

It was reported in September that Lodha Group was looking to invest Rs 2,500 crore in FY20 for three affordable housing projects Mumbai Metropolitan Region (MMR), namely in Thane, Bhiwandi and Taloja. The company revealed in a statement that the projects, to be launched under a separate brand Crown, would be priced between Rs 25 lakh and Rs 50 lakh per unit.

Moody’s Investors Service, as well as Fitch, has recently downgraded the company due to its uncertain financial situation.

For the debt repayment, Lodha Group is likely to use the funds raised in the Lincoln Square project in London, sources told the paper. It may also repay the debt through infusion of funds from promoters, sources added.