India's DLF mulls first bond issue in three years - bankers
30/11/2023 05:56
MUMBAI, Nov 30 (Reuters) - India's DLF Ltd DLF.NS is
mulling its first sale of bonds in three years amid a revival in
the country's real estate market, three merchant bankers said on
Thursday.
"The company is engaging with investors and bankers for a
bond issue but it has not firmed up any plans yet," a banker
with a private lender said, requesting anonymity as he is not
authorised to speak to media.
"It is difficult to pinpoint the exact timing (of the
issue), as the talks are at a very basic stage," the banker
said.
DLF may look to raise around 10 billion rupees ($120
million) through the bond issue but has yet to receive the board
approval for its fundraising plan, the bankers said.
The real estate company may look to raise funds for two
years to five years, they added.
DLF did not reply to a Reuters' email seeking comment.
ICRA has assigned a 'AA' rating to DLF's bonds worth 15
billion rupees.
The company had last raised five billion rupees through the
sale of three-year bonds at 8.25% annual coupon in March 2021.
DLF's likely plan to return to the bond market comes at a
time when India's real estate sector is seeing a revival.
Housing sales in India's top seven cities rose 36%
year-on-year in the July-September quarter, according to real
estate consultancy Anarock.
Shares of real estate firms have soared, with DLF up nearly
68% year-to-date compared with a near 11% gain in the blue chip
Nifty 50 index.
"The economy is picking up and so is the demand for real
estate, which could lead to a rise in fundraising from more such
players in the coming months," one of the bankers said.
($1 = 83.3030 Indian rupees)
(Reporting by Bhakti Tambe; Editing by Mrigank Dhaniwala)
((Bhakti.Tambe@thomsonreuters.com))