DLF plans to refinance ECB at 7%

Sign of a large margarita
Photo by abrinsky
DLF, India’s leading real estate developer is approaching domestic banks like State Bank of India (SBI) and ICICI bank to refinance a 300 million USD loan it had raised last year through external commercial borrowings (ECB). The debt of company might get refinanced at a rate of around 7%.

The refinancing will be done in terms of dollars since last year the debt was raised in dollar terms only. It means that it may not be in accordance with the current base rate. ICICI and SBI currently have base rate of 7.5%.

Due to the recent permit from RBI to take-out financing arrangement through ECB under the approved route for infrastructure sectors like bridges, airports, power sector, sea ports and integrated townships, DLF’s chances for refinancing becomes brighter.