India’s DLF mulls first bond problem in three years – bankers

MUMBAI, Nov 30 (Reuters) – India’s DLF Ltd (DLF.NS) is mulling its first sale of bonds in three years amid a revival within the nation’s actual property market, three service provider bankers mentioned on Thursday.

“The corporate is partaking with traders and bankers for a bond problem but it surely has not firmed up any plans but,” a banker with a personal lender mentioned, requesting anonymity as he isn’t authorised to talk to media.

“It’s tough to pinpoint the precise timing (of the difficulty), because the talks are at a really fundamental stage,” the banker mentioned.

DLF might look to lift round 10 billion rupees ($120 million) by way of the bond problem however has but to obtain the board approval for its fundraising plan, the bankers mentioned.

The true property firm might look to lift funds for 2 years to 5 years, they added.

DLF didn’t reply to a Reuters’ e mail searching for remark.

ICRA has assigned a ‘AA’ score to DLF’s bonds value 15 billion rupees.

The corporate had final raised 5 billion rupees by way of the sale of three-year bonds at 8.25% annual coupon in March 2021.

DLF’s seemingly plan to return to the bond market comes at a time when India’s actual property sector is seeing a revival.

Housing gross sales in India’s high seven cities rose 36% year-on-year within the July-September quarter, in keeping with actual property consultancy Anarock.

Shares of actual property corporations have soared, with DLF up practically 68% year-to-date in contrast with a close to 11% acquire within the blue chip Nifty 50 index.

“The financial system is selecting up and so is the demand for actual property, which may result in an increase in fundraising from extra such gamers within the coming months,” one of many bankers mentioned.

($1 = 83.3030 Indian rupees)

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