DLF surges on reports to launch CMBS issue in next two months

NEW DELHI: DLF Ltd rose as much as 2.2 per cent in intraday trade on Tuesday, following reports that India's largest realty firm is likely to raise about Rs 3,600 crore this quarter through the issue of securities, backed by its IT-SEZ, as part of strategy to replace costlier debt.

DLF also plans to launch its first Real Estate Investment Trust (REIT) this fiscal to monetise its commercial assets.

"We are actively working with rating agency and investment bankers for the Commercial Mortgage Backed Securities (CMBS) issue," DLF Chief Financial Officer Ashok Tyagi told PTI.

He did not give any timeframe for the launch of CMBS. Sources, however, said it could be launched in the next two months.

DLF had in February this year said it was ready to launch a large CMBS of about Rs 3,600 crore in its SEZ business to further improve the quality of debt.