DLF Ltd, a big real estate company in India, is thinking about selling bonds for the first time in three years. This news comes as the real estate market in the country is getting stronger. Three bankers who work with money said this on Thursday.
One banker from a private bank, who wanted to keep their name hidden, said, “The company is talking to investors and banks about selling bonds, but they haven’t decided exactly what to do yet.
They’re not sure when they will sell the bonds because the discussions are still very early.
DLF might try to get around 10 billion rupees (that’s about $120 million) from selling these bonds. But they haven’t got permission from their board to do this yet. They might want the money for two to five years.
DLF didn’t reply when asked for a comment by Reuters.
ICRA, a rating agency, said DLF’s bonds are good and gave them a ‘AA’ rating for 15 billion rupees.
Last time in March 2021, DLF got five billion rupees by selling bonds for three years at an 8.25% yearly interest rate.
DLF is thinking about doing this because the real estate market in India is doing well. Anarock, a real estate company, said house sales in seven of India’s top cities went up by 36% between July and September this year.
Real estate companies’ stocks, like DLF, are doing really well. DLF’s stock went up by 68% this year, which is much higher than the Nifty 50 index, which only went up by 11%.
One banker said, The economy is getting better, and more people want real estate, so we might see more companies trying to get money like this in the coming months.