PAG Asia to invest Rs.400-Cr in M3M India's bonds

Global alternative investment manager PAG Asia, through its Asia Pragati Strategic Investment Fund, will invest INR 400 crore in bonds of Delhi-headquartered Lavish Buildmart, a 100% subsidiary of realtor M3M India .The bonds will be raised for three years and nine months, including a moratorium period during the first five quarters. The bonds carry a 15% interest rate annually with an IRR (internal rate of return) of 18.5%.The proceeds will be used to repay INR 360 crore of unsecured loans raised by Lavish Buildmart for land acquisition. A part of the proceeds will be used to buy land for the “M3M The Cullinan” project .M3M India’s promoters were questioned by the Enforcement Directorate last year for unauthorised transactions with the IREO group.