To Raise Rs. 3,600 Crore via CMBS, DLF debts up 4% to Rs. 19,944 Crore
The net debt of DLF went up by Rs. 817 crore and made Rs. 19,94 crore, at the time of second quarter of the financial year.
The realty firm had planned to increase it by Rs. 3,600 crore with the help of securities along with the support of commercial fundamentals to take place of more expensive debts. The firm reported a rise of nine percent in combined net profit of Rs. 109.06 crore for the quarter end of September. This was based on lower expenses and higher sales. An analyst has represented that on September 30, 2014, the net debt of DLF was exactly Rs. 19,944 crore against Rs. 19,127 crore by the end of June Quarter.
The company still assures of full commitment despite harsh business issues. They are ready to fulfil all the obligations of their respective stakeholders. On the complete debt situation, the company said of the total debt, development (housing) business contributed about Rs. 6,000 crore and rental business Rs. 14,000 crore. DLF also said that the company id preparing for a big Commercial Mortgage Backed Securities or CMBS offering of Rs. 3,600 crore. The company implied two in rating agencies for better indicative rating. Now DLF is waiting for the final rating evaluation letter to improve the debt quality in near future.
DLF intends to keep the net debt of development arm DevCo in range of (+/-) Rs. 1,000 crore all over the medium-term via tactical divestments to or combined ventures with financial or strategic investors. The financial Executive Director of DLF Saurabh Chawla had said in August that the company would make profit of Rs. 3,000-3,500 crore with the help of CMBS by a large IT SEZ.
IN THE MONTH ON May, DLF had also launched the first CMBS of India to raise Rs. 525 crore against a shopping complex in the capital city, “DLF Emporio.” Later in the month of June, the went up by another Rs. 375 crore via CMBS with support from DLF Promenade, taking the entire proceeds to Rs. 900 crore.
Source:
Business Today
CMBS, DLF debts, DLF Emporio, DLF Group, DLF India, DLF Saurabh Chawla, ommercial Mortgage Backed Securities, strategic investors
