DLF Ltd, the country's largest realtor, has raised debt of about $300 million (Rs 1,350 crore) from Standard Chartered Bank, according to a source familiar with the development. The money raised would be used for developing its newly announced housing projects and for other corporate activities.
The funds have been raised for the long term at an expected interest rate range of 8-9.5%, which is at least 500 basis points lower than the prevailing market rates. DLF has net debt of Rs 13,958 crore, and the developer would use part of the fund raised to pay off some of its current year short term debt liability of Rs 3,591 crore.
The loan will help the real-estate company lower its average cost of borrowing to about 12.2%, from 12.5%. Apart from the $300 million debt raised, the developer already has a long-term loan of Rs 2,500 crore sanctioned.
To preserve cash, DLF has deferred development of capital-intensive properties, which include 20 million square feet of office space and 7 million square feet of retail space. DLF plans to launch new projects in the affordable housing segment to cater to the sprawling demand at a lower price point to generate cash flows.
The New Delhi-based developer earlier said it would reduce its outstanding debt by half this fiscal by raising about Rs 5,500 crore from selling its non-core business and selling land plots. DLF is also close to clinching a deal to sell its wind power business for about Rs 800-900 crore. It is looking to raise Rs 2,000 crore by selling its land assets like hotel land, residential plots and commercial land over the next one year.crackcrack
| Company Name | CMP |
|---|---|
| Lodha Developers | 827.75 |
| Dilip Buildcon | 434.80 |
| DLF | 569.60 |
| Oberoi Realty | 1671.50 |
| Ahluwalia Contract(I | 782.75 |
| View more.. | |
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