Lodha Developers skirts default by repaying $324 million bond

Lodha Developers International Ltd. said it has repaid its $324 million bonds maturing Friday, a refinancing investors saw as a key test for Indian borrowers amid the nation’s credit crunch.

The firm, which is building the Trump Tower in Mumbai, last week sold a $200 million bond to part-refinance the existing note, launched a last-minute tap this week to bridge a fundraising gap, and completed other critical conditions just a day before the repayment was due. Any stumble would have resulted in one of India’s largest offshore defaults.

We “have completed all requirements and payments for the bond to be repaid in full along with accrued interest,” Abhishek Lodha, chief executive officer of the group’s flagship company, Macrotech Developers Ltd., said in a statement. “Despite the economic slowdown in India which has been further compounded by factors like coronavirus and the oil price shock, we are pleased that we have successfully completed this obligation.”