India’s biggest developer has paid off $324 million in bonds, avoiding a default that would have been among the country’s biggest ever.
Macrotech Developers — formerly Lodha Developers and a subsidiary of Lodha Group — has been struggling amid a slowdown in the domestic property market, according to Bloomberg. The firm is building Trump Tower in Mumbai.
In November, Moody’s downgraded its bonds further into junk territory to Caa1, but now CEO Abhishek Lodha has said in statement that it’s “completed all requirements and payments for the bond to be repaid in full along with accrued interest.”
The company used proceeds from a $200 million bond sale earlier this month to pay off part of its outstanding bonds. The sale included a condition that the firm set aside cash before it could use the proceeds, according to Bloomberg.
Lodha also raised $150 million through a refinancing of properties in London, another $100 million from an unnamed family office, and $70 million from the sale of a property.
Indian real estate companies have struggled to refinance debt because lenders are running short on cash. They have increasingly relied on unregulated shadow banks for debt, according to Bloomberg.
Trump Tower Mumbai, an 800-foot-tall residential tower, is part of Macrotech’s larger 17.5-acre development called “The Park.” The tower sits on the edge of a seven-acre park in the development. The Park development is expected to be completed by the end of next year. [Bloomberg] — Dennis Lynch