Lodha Developers sold a maiden $200 million five-year bond callable in year three early Friday morning, obtaining a relatively small order book of $400 million.
The Ba3B rated Reg S-only offering didn't manage to garner enough interest to tighten pricing. The bond priced at its initial guidance yield of 12%, the highest ever for an Indian high-yield corporate, according to Bloomberg bond data. That is at fair value, a credit analyst said.
The developer struggled due to falling Indian property prices and the structure of the deal.
Investors are staying away from the property sector, said a source...