Deutsche Bank likely bought most of the DHFL debt on behalf of overseas investors.
Deutsche Bank was likely the sole buyer of Dewan Housing Finance (DHFL) bonds worth nearly Rs 7,000 crore that changed hands during the past few weeks.
The DHFL bonds were purchased by Deutsche Bank at discounts of 70-80 percent, according to a report by The Economic Times.
Deutsche Bank likely bought most of the DHFL debt on behalf of overseas investors, the report said.
DHFL bonds worth Rs 6,790 crore, which were once AAA-rated, changed hands between July 1 and August 12, the report said. Half of these bonds had matured last year but payments were pending, the report added.
Moneycontrol could not independently verify the story.
Deutsche Bank declined to comment on the transactions when contacted by The Economic Times.
On August 12 alone, the European lender bought around Rs 3,550 crore of DHFL debt from Yes Bank, industry sources told the paper. This series of bonds, which were bought in two large transactions, will mature in June 2021.
The DHFL bonds were sold by domestic mutual funds, bank treasuries and other financial institutions, the report said.Oaktree and Cerberus Capital had also expressed interest in purchasing the bonds, the report said.