Housing finance company DHFL has raised Rs 1,375 crores from funds managed by Oaktree Capital Management LP (Oaktree). The transaction was structured using RBI’s Securitisation Guidelines and involves securitisation of wholesale real estate project finance loans, with security over a near-complete residential project in Mumbai. The transaction represents one of the largest investments in Indian residential real estate by an institutional investor.
DHFL added that it intends to meaningfully reduce its real estate project finance exposure, through more such transactions in the future. Certus Capital acted as the financial advisor on the transaction. Commenting on the deal, Kapil Wadhawan, CMD of DHFL said: “We recently committed to expeditiously bring down our project finance exposure. Within less than two months of making the above commitment, the company has consummated the above transaction that reduces its project finance book by about eight per cent. We will continue to focus on growing our retail lending franchise.”
Gaurav Parasrampuria, vice-president, Oaktree, added: “We are pleased to partner with DHFL, to design and invest in this first of its kind securitisation of wholesale loans in India. We have been working closely with Kapil and his team to expeditiously close this first transaction and look forward to exploring more ways, to help DHFL to optimise its balance sheet.” Oaktree is a global investment manager, specialising in alternative investments, with USD 124 billion in assets under management.
Pedro Urquidi co-portfolio manager and head of distressed debt, Europe, 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.”