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DHFL makes Rs 962 crore payment towards NCDs, to seek ratings upgrade

Crisil and ICRA had downgraded ratings on DHFL's commercial papers (CPs) worth Rs 850 crore last week, citing delay in payments.

DHFL makes Rs 962 crore payment towards NCDs, to seek ratings upgrade

New Delhi: Crisis-ridden DHFL said Tuesday it has paid Rs 962 crore towards interest payment on debt instruments which fell due on June 4 and would seek a rating upgrade as it met the seven-day "cure period" to pay off its obligation.

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Crisil and ICRA had downgraded ratings on DHFL's commercial papers (CPs) worth Rs 850 crore last week, citing delay in payments.

"The company has made a full payment towards interest payable on secured redeemable NCDs issued by way of the public issue within the cure period of seven working days. The company has made interest payments in lieu of Rs 961.95 crores as committed to its debenture holders. With this tranche, the company confirms full payment and will seek rating upgrades from agencies," it said in a statement.

DHFL paid the interest towards a total of 12 debt instruments (NCDs) amounting to Rs 961.95 crore which were due for payment on June 4, 2019, according to a regulatory filing.

This payment of Rs 962 crore is inclusive of the Rs 500 crore DHFL received from exiting its entire stake in subsidiary firm Aadhar Housing Finance Ltd (Aadhar).

Sources earlier in the day told PTI that the NBFC would use the proceeds of Rs 500 crore it got by selling its entire 9.15 per cent (23,01,090 shares) in Aadhar Housing to pay off NCD obligations.

DHFL has met its obligation towards NCDs within the stipulated "cure period" or grace period, it raises questions Crisil and ICRA that had downgraded ratings on its commercial papers (CPs) worth Rs 850 crore earlier last week, citing delay in payment, the sources said further.

The non-banking finance company (NBFC) had to meet payment obligation worth Rs 961.95 crore on public NCDs and Rs 200 crore towards private placement NCDs. The payment towards Rs 200 crore (private placement) was paid in complete last week, the sources said further.

On Monday, the promoter of Aadhar Housing Wadhawan Global Capital (WGC), DHFL, Kapil Wadhawan, Dheeraj Wadhawan and Aruna Wadhawan, who all formed part of promoter and promoters group of DHFL completely exited Aadhar at a valuation of about Rs 2,200 crore.

The sale/transfer of the entire stake held by DHFL in Aadhar to BCP Topco VII Pte Ltd, which is controlled by private equity funds managed by Blackstone was completed on Monday.

Aadhar Housing and Blackstone in a joint statement said that Blackstone has acquired 97.7 per cent stake in the company.

"Blackstone today announced that private equity funds managed by Blackstone have acquired a 97.7 per cent stake in Aadhar, including the entire stake held by the existing controlling shareholders, Wadhawan Global Capital Ltd (WGC) and DHFL. As part of the transaction, Blackstone has also infused Rs 8,000 million primary equity capital into Aadhar to fund the company for future growth," the statement said.

DHFL has caught itself in the liquidity trap post the IL&FS crisis that hit the NBFC sector late September last year.

The Reserve Bank of India, on its policy outcome last Thursday also said it was closely monitoring the developments in the NBFC sector and will not hesitate to take measures to ensure financial stability.

Country's largest lender SBI too said it has been closely monitoring its exposure to the NBFC sector for the past 10 months and taking action as required. Since September 2018, the company has managed to make liabilities payment of over Rs 36,000 crore without availing any fresh funding from any lender, DHFL said.

"The Company reaffirms that they are committed to meeting all future debt servicing obligations in a timely manner, through further asset monetisation plans as well as onboarding of a strategic partner for its business," it said further.