Lodha Developers International is looking to raise close to $100 million by issuing dollar bonds that are likely to get priced later this month, sources aware of the matter have confirmed with FE. The bonds will be an extension of the dollar debt issued by the company in 2015 through which it raised $200 million at a coupon rate of 12%, sources indicated. “The company is likely to approach the market later this month,” said one of the sources. The company could not be immediately contacted to confirm the story. Moody’s Investors Service has confirmed Lodha Developers Private Limited’s (LDPL) B2 corporate family rating. At the same time, it has also confirmed the B2 backed senior unsecured debt rating of the US dollar denominated bonds issued by Lodha Developers International Limited. The outlook on all ratings is stable, the ratings agency said in a release. “The rating action on the CFR (corporate family rating) and senior unsecured rating concludes a review for downgrade initiated on July 27, 2017 and follows the announcement by the company that it has completed the refinancing of its bridge loan for the Grosvenor Square development in London,” Moody’s said.
Bond holders will benefit from the diversification to the London real estate market as well as from having access to the cash flows from the London properties, it added. 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. In January 2017, the ratings were further downgraded to B2. In July this year, Moody’s had placed the bonds on review for downgrade. However, the latest rating confirmation follows the alleviation of the refinancing risk as indicated by Saranga Ranasinghe, a Moody’s assistant vice president and analyst “The confirmation of the ratings reflects the alleviation of the refinancing risk following the establishment of a loan that will mature in 40 months to fund construction for the Grosvenor Square development,” stated Ranasinghe.
High yield issuances have gained traction this year and bankers indicate a few more issues could hit the market before the end of the year. GMR Hyderabad International Airport Limited (GHIAL), which has commenced roadshows in overseas locations for its $300-350 million dollar debt, is likely to price its bonds this week according to sources. Foreign currency bond issuances by Indian firms and banks have hit a record high this year to hit $12 billion.