The country?s largest real estate developer DLF is in talks with leading domestic banks ICICI Bank and State Bank of India to refinance a $300-million loan it had raised via external commercial borrowings (ECB) last year. The company is likely to get the debt refinanced at a rate of around 7%. DLF had raised the debt from Standard Chartered last year at about 9.5% to develop integrated townships in the country.
Since the debt raised was in dollar terms, the refinancing would also be done in dollar terms, which means that it need not be according to the current base rate. The current base rate for lending by ICICI and SBI is 7.5%.
When contacted, a DLF spokesperson declined to comment.
DLF?s prospects for refinancing becomes brighter since RBI has recently permitted take-out financing arrangement through ECB under the approved route for infrastructure sectors like sea ports, airports, bridges, power sector and integrated townships.