DLF-GIC JV DCCDL Raises ₹1,100 Crore via NCDs to Optimize Debt Costs
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 non-convertible debentures (NCDs) to refinance higher-cost borrowings and optimize its debt profile.
DlfGicNcdsReal EstateDebt RefinancingReal EstateOct 05, 2025
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.
Frequently Asked Questions
What is DLF Cyber City Developers Ltd (DCCDL)?
DCCDL is a joint venture between DLF, a major real estate company, and GIC, Singapore’s sovereign wealth fund. It manages a substantial portfolio of commercial and retail properties, totaling 44 million square feet across multiple cities, including Gurugram.
How much did DCCDL raise through NCDs and what is the purpose?
DCCDL raised ₹1,100 crore through the issuance of non-convertible debentures (NCDs). The proceeds are primarily used to refinance higher-cost borrowings and optimize the company’s debt profile.
What are the key financial results of DCCDL in the first quarter of FY26?
In the first quarter of FY26, DCCDL reported a 26 per cent year-on-year increase in net profit to ₹593 crore and a 12 per cent rise in total income to ₹1,739 crore from ₹1,553 crore in the corresponding period last year.
What are the two main segments of DLF Group?
DLF Group operates through two main segments: the development segment, which focuses on residential projects, and the annuity segment, which involves construction, leasing, and management of commercial and retail properties.
How does refinancing through NCDs benefit DCCDL?
Refinancing through NCDs helps DCCDL reduce interest expenses, improve margins, and enable more effective cash flow management. It also supports ongoing portfolio management and provides additional capital for potential expansion or strategic acquisitions.
Related News Articles
RERA Cases Weekly Round-Up: Relief for Homebuyers Across India
From refund orders to structural defect rectification
Gurugram Leads Housing Price Surge, Mumbai Lagging Behind
In the last five years, the average price of new housing projects in India’s top 10 cities has surged by 88%, with Gurugram leading the pack at a 160% increase. Mumbai, on the other hand, has seen the lowest rise at 37%. This surge is attributed to massiv
Anant Raj Reports 75% Increase in Net Profit for Q2 FY25
Anant Raj has announced a significant 75% increase in its net profit for the second quarter of the fiscal year 2025. The company also reported a 53.67% rise in its net consolidated total income. This robust growth is a testament to the company's strategic
DLF JV Firm Sells IT Park in West Bengal's Largest Real Estate Deal for Rs 637 Cr
In a significant move, DLF, the country's largest real estate developer by market cap, has completed the sale of an IT park in West Bengal for Rs 637 crore. The deal, involving a joint venture firm, marks one of the largest real estate transactions in the
Eleganz Interiors Files DRHP with NSE Emerge
Eleganz Interiors plans to use Rs 25 crore from the IPO proceeds to repay a portion of its outstanding borrowings, as it files its DRHP with NSE Emerge.
Tata Steel Slapped with Rs 146 Mn Fine for Delay in Stamp Duty Payment
Tata Steel, one of India's leading steel producers, has been penalized with a fine of Rs 146 million by the Maharashtra government for failing to timely pay the stamp duty. The fine, as per the company's exchange filing, highlights the importance of adher