DLF Endeavors to Cut Borrowing Costs

August 1, 2007	(Be the first to rate this story!)  Loading ...
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India’s biggest real estate company DLF Ltd. steps up efforts to reduce its cost of borrowing by 3-4% from the present 10-11%. This is why; the company is planning to issue commercial papers and bonds to replace a part of its existing Rs 7,400 crore debt.

The company will start with the process in the current quarter, informs Ramesh Sanka, CEO, DLF Group. Its debt will be rated and then a call would be taken on floating short term commercial papers and bonds which may hit the market in the third quarter of 2007-2008.

Of the total debt of Rs 74,000 crore, almost Rs 6,000 crore will be of medium to long term nature. Bonds or commercial papers may use to finance a part of its upcoming projects with large capital outlay. The company has some mega ventures in its pipeline. Among some notable projects is a Rs 6,000 crore convention centre to be built at Dwarka in Delhi.
DLF is in a process to acquire land for SEZs, working out the plans to launch middle income residential projects across the country and development of hotel properties. It also has plans to invest around 10,000 crore annually in different projects in major real estate segments – commercial, residential, and retail.  DLF will also take up the projects in other budding segments such as hospitality and SEZs.

RBI has been tightening the norms related to credit flow into the real estate sector for the past one year. For that reason, several real estate companies have to tap the capital market to fund their on going projects.

News Published Under:   Real Estate Developers |

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