Rs 20 Billion Loan Secured by DLF from Banks

February 11, 2009	(Be the first to rate this story!)  Loading ...
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DLF Ltd., India’s biggest realty company by sales, has secured long-term loans of about 20 billion rupees ($411.7 million) from three state-run banks and a financial institution, a person with direct knowledge of the matter said Tuesday. DLF has tied up loans of about 7 billion rupees from Punjab National Bank and 3 billion rupees from State Bank of India, the person, who asked not to be named, told Dow Jones Newswires.

The New Delhi-based company has also secured funding of about 7.5 billion rupees from Life Insurance Corp. of India and 2.5 billion rupees from Bank of India, the person said. “The loans have been tied up at 12%-13% interest rates,” the person said. Sanjey Roy, a spokesman for DLF, declined to comment on the company’s fundraising plans, but said “we are very comfortably positioned and will fulfill all our obligations on time.”

DLF is raising fresh loans and also replacing costlier short-term loans with cheaper long-term debt as five-year high lending rates and a slowing economy hit demand for real estate in Asia’s third-biggest economy. DLF had raised 10 billion rupees in long-term debt during the quarter ended Dec. 31, Vice Chairman Rajiv Singh said last week. The company has a net debt of about 130 billion rupees, Mr. Singh said. About 40 billion rupees of the total debt is short-term, maturing during mid-2009 to late-2009, he said last week.

News Published Under:   Real Estate Developers |

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