Lodha Group repays offshore bonds worth $55 million ahead of scheduled maturity

Realty Developer Lodha Group, listed as Macrotech Developers, has repaid its US dollar bonds worth $55 million or over Rs 438 crore in full ahead of six months of its scheduled redemption of this debt in March 2023.

The company has repaid the bonds listed on the Singapore Exchange Securities Trading through its wholly owned subsidiary Lodha Developers International Ltd, Mauritius.

These bonds were part of a total $225 million debt raised by the developer’s wholly-owned subsidiary Lodha Developers International Ltd, Mauritius against its luxury residential projects--1 Grosvenor Square and Lincoln Square--in London.


In March, the company had redeemed part of these offshore bonds with a principal amount of $170 million or around Rs 1,355 crore. The company has repaid this debt nearly a year ahead of scheduled maturity of these bonds in March 2023

The developer has financed the repayment of these bonds through robust sales performance of its both super-premium residential projects in London.

"Our UK investments are performing ahead of schedule and we are pleased that with this redemption, the US dollar bonds have been paid in full, 6 months ahead of schedule. This event reinforces the strong operating performance of our business and the significant cash flow generated from this,” said a company spokesperson.

Upon redemption of the outstanding Notes, there will be no further outstanding bonds and accordingly, these bonds will be cancelled and delisted from the Singapore Exchange Securities Trading.

The company had announced earlier that it is planning to repatriate all of its investments made into luxury residential projects in London and revenue generated from both these super-premium projects, after repaying these projects' debt, in the next few quarters.

Lodha had invested 306 million pounds or Rs 3,120 crore to acquire MacDonald House, Central London in 2013 and had acquired second property New Court next to the London School of Economics and the Royal Courts of Justice on Carey Street for 90 million pounds or Rs 930 crore in 2014.

The company has redeveloped both MacDonald House and New Court into luxury residential properties namely 1 Grosvenor Square and Lincoln Square, respectively. Both these properties have a gross development value of 1.5 billion pounds or over Rs 15,000 crore.

Macrotech Developers had raised Rs 2,500 crore through its initial public offering (IPO) of equity shares in April. Following this, the developer raised Rs 4,000 crore from foreign and domestic institutional investors in November through the largest ever Qualified Institutional Placement (QIP) by a real estate developer in India.