MUMBAI: DLF Ltd, India's top listed real estate firm, is looking to sell 10 billion rupees of bonds and is in talks for a foreign currency loan to help reduce high-cost debt, two sources with direct knowledge of the matter said on Monday. The company is looking to sell two-year bonds carrying a coupon rate of 10 percent, payable half-yearly, and three-year bonds at 10.50 percent, market sources said.
The yield-to-maturity is 10.25 percent for the two-year bonds and 10.77 percent for the three-year tranche, they added. Axis Bank is arranger to the deal. Sources told Reuters that DLF is looking to refinance high-cost debt including part of a 17-billion-rupee loan taken from Punjab National Bank (PNB) at an interest rate of about 13.5 percent.
They may restructure our loan by converting it into a foreign currency loan at a lower rate. They are in talks with us on this," said a senior official at PNB. DLF had also issued 7.2 billion rupees of five-year bonds at a high yield of 14 percent in February.
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