Lodha Developers postpones dollar bond issue

MUMBAI: Lodha Developers has postponed its plans to raise funds through dollar bonds to early 2015, a development which led Fitch to withdraw the city-based realty player's rating for the proposed issue.

The company was expected to issue the overseas bonds this week, but the fund raising exercise has been put off till early next year apparently due to prevailing market conditions.

"As a large corporate, we continuously look for ways to improve our profitability, including by lowering our cost of funds.

"We are currently exploring the possibility of an overseas bond issuance in early 2015 - the exact timing will be determined by various factors, including market conditions," a company spokesperson said here today.

Fitch Ratings had assigned 'B+' for the proposed US dollar notes, which were to be issued by the firm's overseas subsidiary Lodha Developers International (Mauritius).

"The notes were to be issued by Lodha Developers International (Mauritius) and guaranteed by Lodha. The rating is being withdrawn because Lodha does not expect to proceed with the bond issue within the previously envisaged timeline," Fitch said in a statement.

The Group is currently developing over 35 million sq ft of prime real estate, with over 20 projects in Mumbai, London, Pune and Hyderabad.