DLF

NEW DELHI: India’s biggest real estate firm DLF announced to raise about Rs 1000 cr through securities backed by mortgage of its retail assets by November end. The fund is raise, as part of its strategy to cut down the debt.

DLF plans to start Commercial Mortgage Backed Security on an emergency basis in its two malls in National Capital. The product is a introduced first time  in Indian market.

The realty giant has a huge Rs 19,508 cr net debt and its finance cost stood at  Rs 600 cr during the September Quarter. The firm is in the final stages of designing and developing the product in its two malls.

Pension funds, insurance firms as well as non-domestic investors are welcome to take part in the process. The product will add a new chapter to the firm.

The product is being planned as paper rated higher than the firm’s overall rating, which will not only term out the liability but also be both cash flow efficient and save interest costs for the company.

The plan will now start on the two retail assets and after the initial results the firm is thinking to bring it on bigger scale . The firm is also hoping that the new instrument can improve the corporate ratings of the firm.