Lodha Developers builds bond curve at a cost

The Indian developer paid the highest-ever yield for its debut $200 million bond in the firm's second attempt at foreign fundraising.
Lodha's penchant for high-end projects in Mumbai
Lodha's penchant for high-end projects in Mumbai

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...

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