DLF's rental subsidiary, DLF Cyber City Developers Ltd (DCCDL), has successfully raised Rs 1,100 crore through the issuance of non-convertible bonds (NCDs) on a private placement basis. This development was disclosed in a regulatory filing by DLF, highlighting that the DCCDL board has given its approval for the allocation of these bonds.
DCCDL's Board of Directors' securities allocation committee approved the allocation of 1,10,000 senior, listed, assessed, secure, exchangeable, transferable, rupee-denominated NCDs. These NCDs each have a nominal value of Rs 1 lakh and were issued on a private placement basis to eligible investors.
The total size of the issue is Rs 1,100 crore, and these NCDs will be listed on the BSE (Bombay Stock Exchange). The coupon rate for the NCDs is set at 8.25% per annum, with an expiry date of 17 August 2033.
DCCDL is a joint venture between DLF and Singaporean sovereign wealth fund GIC. DLF has a 66.67% stake in DCCDL, while GIC owns a 33.33% stake in the joint venture. In particular, DLF holds its rental assets, consisting of offices and shopping malls, primarily through DCCDL. DCCDL features rent-yielding office and retail properties spread over approximately 40 million square feet, generating an annual rental income of approximately Rs 4,000 crore.
In summary, DLF's rental arm, DCCDL, has raised Rs 1,100 crore by issuing NCDs on a private placement basis, with these effects being quoted on the BSE. This financial move is in line with DLF's strategy to effectively manage its rental assets through DCCDL, in partnership with its partner GIC.