DLF Rental Arm Raises Rs 1,000 Crore Through Debentures

Realty major DLF on Monday said its rental arm has raised Rs 1,000 crore through debentures to refinance its existing debt.

DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF Ltd and Singapore wealth fund, has successfully raised Rs 1,000 crore through private placement of listed, secured and redeemable non-convertible debentures (NCDs).

The fund has been raised at 6.7 per cent annual fixed coupon rate maturing in September 2024.

The NCDs will be listed on the Wholesale Debt Market of BSE.

"The proceeds will be utilised to refinance its existing debt resulting in interest savings and marks DCCDL's foray into the listed debt capital market and widening its investor base," DLF said in a statement.

DCCDL's commercial portfolio of around 34 million square feet is spread across seven cities.

The financing demonstrates the strength of DCCDL's quality cash flow and its ability to raise funds at a competitive pricing, it said.

Our endeavour is to reduce the overall cost of our debt, the successful placement of the NCDs is a resonant endorsement of DLF's commercial portfolio.

"It demonstrates the continued trust and faith that investors have in DCCDL platform and we remain committed to creating long term value for all our stakeholders," said Vivek Anand, Group Chief Financial Officer, DLF Ltd.

Sriram Khattar, Managing Director of DLF Rental Business, said DCCDL has a track record of zero default in all its financial obligations.

"We are constantly optimising our treasury portfolio to reduce costs to achieve better financial efficiencies and placement of NCD's demonstrates our ability to raise funds from debt capital market and reaffirms the company's commitment to its stakeholders," Khattar said.

DLF has developed 153 real estate projects and has also developed an area of approximately 330 million square feet.

It has 215 million square feet of development potential across residential and commercial segment. The group has an annuity portfolio of over 36 million square feet.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor