Amarchand Mangaldas acts for DLF on India’s first Commercial Mortgage Backed Security (CMBS) issue of Rs. 525 crore ($89.9 million)..Amarchand Mumbai Finance Partner Leena Chacko advised DLF Emporio, a subsidiary of DLF in respect of issuance of rated, secured, redeemable, listed non-convertible debentures (NCDs) under the CMBS structure by way of private placement..In a CMBS issue, which is a new way for Indian real estate developers to raise funds, a company issues NCDs to investors and gets money upfront. Interest on this money is paid every month using rentals from the commercial property that are put in an escrow account and at the end of the CMBS tenure, the company gets to pay off the principal, according to ET..The funds raised by DLF were at a coupon rate of 10.9% and carry a legal maturity of 7.5 years, and the interest will be paid through the rentals accruing from the mall.
Amarchand Mangaldas acts for DLF on India’s first Commercial Mortgage Backed Security (CMBS) issue of Rs. 525 crore ($89.9 million)..Amarchand Mumbai Finance Partner Leena Chacko advised DLF Emporio, a subsidiary of DLF in respect of issuance of rated, secured, redeemable, listed non-convertible debentures (NCDs) under the CMBS structure by way of private placement..In a CMBS issue, which is a new way for Indian real estate developers to raise funds, a company issues NCDs to investors and gets money upfront. Interest on this money is paid every month using rentals from the commercial property that are put in an escrow account and at the end of the CMBS tenure, the company gets to pay off the principal, according to ET..The funds raised by DLF were at a coupon rate of 10.9% and carry a legal maturity of 7.5 years, and the interest will be paid through the rentals accruing from the mall.
