Lodha Developers embarks on its introductory dollar bond issue in collaboration with banks
Lodha Developers, a real-estate company based at Mumbai has decided to hire two banks for its first dollar bond issue that aims at raising money from investors abroad by the end of this year. This announcement comes after Century Ltd. which raised 175 million dollars through selling bonds closed its issue on Friday.
Two banks of America, Merrill Lynch and JP Morgan Chase & Co have been hired by Mumbai based real-estate company, Lodha Developers to issue a dollar bond. This bond plans to raise money from investors in foreign currency as per reports from a spokesperson. The fundraising is likely to be completed by the end of this year itself.
There have been no information provided on the tenure of the tie-up or the amount planned to be raised through this project; however, a mandate has already been issued.
Lodha Developers following the trend: Similar such moves were made by Mumbai based company, India Bulls Real Estate Ltd. whose US based subsidiary; Century Ltd. raised an estimated amount of 175 million dollars through selling of bonds that are to mature in a period of five years offering 10.25% per annum. This was announced a few days before the company actually made any announcements in this regard. The strategies taken up by India Bulls have been cited by many as the first of its kind in India where no other real estate company or its subsidiary has raised money in a similar manner before. The Lodha Developers are said to be merely following the trend set by India Bulls Real Estate.
These two companies can afford to raise money in the form of dollar funds because of their existing businesses and projects abroad and thus the money can also be put to efficient use. Spokesperson from Lodha Developers however declined to comment on the issue.
News reports in July revealed that Lodha Developers have planned to come up with a residential project in Mumbai that will be the world’s tallest residential tower. There have been plans of making a 1 billion dollar initial public offer making the company’s worth at an estimated 10 billion dollars. However, since its announcement in July, no further developments have been made.
Source: Live Mint
