DLF debt up 4% at Rs 19,944 cr; to raise Rs 3,600 cr via CMBS

Realty giant DLF's net debt rose by Rs 817 crore during the second quarter of this fiscal to Rs 19,944 crore while it plans to raise Rs 3,600 crore through an issue of securities backed by commercial assets to replace costlier debt.
Yesterday, 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 September 30, 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 2 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.
In May, DLF had launched the country's first CMBS to raise Rs 525 crore against a shopping mall 'DLF Emporio' in the national capital.
Later in June, it raised another Rs 375 crore through CMBS backed by 'DLF Promenade' mall here, taking the total proceeds to Rs 900 crore.