DLF Cyber City Developers Ltd (DCCDL), a joint venture between real estate major DLF and Singapore’s sovereign wealth fund GIC, has raised ₹1,100 crore through the issuance of non-convertible debentures (NCDs) to refinance higher-cost borrowings. The move is aimed at reducing interest expenses and optimizing the company’s debt profile, a senior company official said.
According to a regulatory filing, the securities allotment committee of DCCDL’s board approved the allotment of 1,10,000 NCDs on a private placement basis to eligible investors. These NCDs carry a coupon rate of 6.91 per cent per annum, with interest payable quarterly. The private placement approach allows DCCDL to access debt capital efficiently while maintaining flexibility in structuring repayment schedules.
DLF’s Vice Chairman and Managing Director of the rental business, Sriram Khattar, said the company continuously reviews its treasury portfolio to lock in favorable financing costs. “The current proceeds are being used primarily to reduce higher-cost borrowings,” he stated. The refinancing aligns with DLF’s broader strategy of managing capital costs and strengthening its financial position amid ongoing interest rate fluctuations in the corporate debt market.
As of the April-June quarter of FY26, DCCDL’s net debt stood at ₹17,287 crore. The joint venture manages a substantial portfolio of commercial and retail properties totaling 44 million square feet across multiple cities, including Gurugram. DLF holds nearly 67 per cent stake in the venture, while GIC holds the remaining portion, reflecting a long-term partnership focused on steady rental income and asset growth.
Financial results for the first quarter of FY26 indicate robust performance. DCCDL reported a 26 per cent year-on-year increase in net profit to ₹593 crore, supported by higher income from rent-yielding commercial properties. Total income for the quarter rose 12 per cent to ₹1,739 crore from ₹1,553 crore in the corresponding period last year. Analysts note that these results demonstrate the resilience of annuity-based revenue streams in the commercial real estate sector.
DLF Group operates through two main segments: development and annuity. The development segment primarily focuses on residential projects, while the annuity business involves construction, leasing, and management of commercial and retail properties. A significant portion of the group’s commercial assets is held within DCCDL, which functions as the rental and annuity-focused arm. The NCD issuance supports ongoing portfolio management and provides additional capital for potential expansion or strategic acquisitions.
Industry observers highlight that refinancing higher-cost borrowings through instruments like NCDs is becoming increasingly common in India’s real estate sector, where companies aim to manage debt efficiently while optimizing interest expenses. Such financial discipline helps maintain healthy balance sheets, improve credit profiles, and enhance investor confidence.
The refinancing is expected to improve DCCDL’s margins, reduce financing costs, and enable more effective cash flow management. By leveraging structured debt instruments, the joint venture can continue to invest in high-quality office and retail assets, ensuring sustainable long-term growth.
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