Millennium Post

DLF to raise Rs 3,600 crore through CMBS

On Thursday, DLF reported nine per cent rise in consolidated net profit at Rs 109.06 crore for the quarter ended September on account of higher sales and lower expenses.

According to an analyst presentation, DLF's net debt stood at Rs 19,944 crore as on 30 September, 2014 against Rs 19,127 crore at the end of June quarter.

Still, DLF said: ‘Despite difficult business conditions, the company is fully committed to meet its obligations to all its stakeholders.’

On the debt situation, the company said that out of total debt, development (housing) business contributed about Rs 6,000 crore and rental business Rs 14,000 crore.

In the presentation, DLF said it is ‘getting ready for a large CMBS (Commercial Mortgage Backed Securities) offering of Rs 3,600 crore approximately.’

The company further said that indicative ratings by two rating agencies are in place and it is awaiting final rating evaluation letters to further improve the quality of debt.

DLF said the company intends to keep the net debt of the development arm (DevCo) range bound (+/-) Rs 1,000 crore across medium-term through tactical divestments to or JVs with strategic or financial investors. In August, DLF Executive Director (Finance) Saurabh Chawla had said that the company would raise Rs 3,000-3,500 crore through CMBS backed by a large IT SEZ.
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