Loans

DHFL uses cash from sale of loans to clear obligations

Dewan Housing Finance Corp Ltd (DHFL) has paid Rs 100 crore to investors in its commercial paper, due for redemption on Friday, from the proceeds of loan portfolios the company recently sold to financiers.

DHFL raised Rs 350-400 crore collectively by selling loan portfolios, said two people with direct knowledge of the matter. Besides paying investors in its commercial paper, or short-term debt instruments, the troubled home financier used the rest of the sale proceeds to partially pay due interest on bonds sold last year, and to meet repayment obligations on outstanding fixed deposits accepted from subscribers, sources told ET.

Bajaj Allianz General Insurance was the investor in DHFL’s commercial paper.

DHFL had failed to pay about Rs 1,000 crore by way of interest that had fallen due on Tuesday on a set of bonds sold last summer.

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DHFL stock slumps 11%
The troubled home financier didn’t answer ET’s queries on the repayments till the time of going to press. An email sent to Bajaj Allianz late in the evening remained unanswered.

The company was also planning to sell two sets of builder loans to meet immediate debt obligations. The portfolios were expected to garner about Rs 900 crore, ET reported Thursday, citing a rating company report.

Over the past few days, CRISIL, ICRA and CARE have downgraded DHFL’s debt securities to ‘D’, or ‘default’ category, citing the delay in interest payments to bond holders. The spate of downgrades has caused mutual funds with exposure to DHFL to mark down net asset values.

DHFL shares have slumped 33 per cent in June on investor concerns about solvency at the home financier, which has been facing a cash crunch since September. The stock lost 11 per cent on Friday to close at Rs 83.50 apiece on the BSE.

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