Certus Capital advised on Oaktree’s ₹1,375 crore acquisition of wholesale real-estate loans from DHFL
In a nutshell
Certus originated and structured one of India’s first securitization of wholesale real estate loans
Dewan Housing Finance Corporation Limited (“DHFL”, a US$20Bn housing finance company) was under liquidity stress, triggered by the Indian credit crisis that started with IL&FS’ default in Sep 2018. Certus was appointed to help DHFL generate liquidity against a ~₹10,000+ crore wholesale real estate loan portfolio.
We undertook an accelerated review of this portfolio and selected gross underlying loans worth ~₹6,100 crores, primarily across three Mumbai based projects, as first phase.
Above mentioned transaction, was the first one we undertook. Underlying the loans in this transaction is a high-quality, near complete, residential project in Mumbai, belonging to a ~US$12+ Bn group.
The transaction was done under RBI’s Debt Securitization Guidelines on ‘true sale’ basis and using listed, rated PTCs. A first of its kind structure used for investing in wholesale real estate loans.