DLF Raises 375 Crore Through Commercial Mortgage Backed Securities

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Bombay / Bangalore: DLF SA, India’s largest real estate developer by market capitalization, raised ?? 375 crore by issuing Commercial Mortgage Backed Securities (CMBS) against its South Delhi-based luxury mall DLF Promenade Ltée.

A CMBS is a form of debt product in which the developer raises capital against a rent-producing business asset for a term of seven to eleven years depending on the specific term of each issuer. Paper bears a fixed interest rate unlike other debt securities.

The paper, which carried an interest rate of 10.9%, has a maturity of 7.5 years, he said in a communication to the stock exchange.

This is the second DLF Group show in the past month. In May, the company had raised ?? 525 crore against its luxury mall based in South Delhi DLF Emporio SA, marking the first CMBS broadcast in the country by a developer.

With this show, DLF collectively raised ?? 900 crore across CMBS road against two of its malls.

Saurabh Chawla, executive director of finance at DLF, said Friday’s show marked the completion of Phase I of DLF’s CMBS broadcasts. The company will continue to explore more such transactions in the future, Chawla said.

When announcing its financial results for the March quarter, DLF said the company plans to raise approximately ?? 3000- ?? 3,500 crore of capital during the current fiscal year against its office buildings.

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