DHFL raises Rs. 1,375 crore from Oaktree Capital
Global investment firm Oaktree Capital purchased loans from DHFL’s wholesale portfolio on a true sale basis. The transaction is in accordance with RBI’s Securitization Guidelines.
The deal is in-line with Dewan Housing Finance Corporation Limited (DHFL) commitment to reduce its project finance exposure. Speaking on the transaction, the CMD of DHFL said: “The company has consummated this transaction that reduces its project finance book by about 8 per cent.”
The transaction follows RBI’s Securitization Guidelines. The deal involves securitization of finance loans of wholesale real estate project with a near-complete residential project in Mumbai as security. The transaction is also one of the largest investments by an institutional investor in Indian residential project.
Oaktree is a leading alternative investment firm with US$124 billion in assets under management (AUM) as of September 30, 2018. Reacting to the transaction, Pedro Urquidi from Oaktree said: “This first of its kind transaction in India is representative of how we methodically apply our multi-asset class, structuring, underwriting, investing and restructuring expertise to partner with Asian financial institutions to help them meet their objectives.”
Meanwhile, on Tuesday at 14:55 the stock of DHFL was quoting Rs. 176.45 per share, down by Rs. 8.40 or 4.54 per cent on BSE.