Signature Global raises ₹875 cr via IFC NCDs to fund housing, repay debt

The Delhi NCR-based developer will use the funds to develop mid-income and ESG-aligned housing projects, repay Rs 470 crore of debt, and strengthen its balance sheet

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Delhi-National Capital Region (NCR)-based realty firm Signature Global on Tuesday announced that it is raising ₹875 crore through private placement of non-convertible debentures (NCDs) to the International Finance Corporation (IFC), a lending arm of the World Bank.

 

This comes after the company had recently announced that its debenture committee had approved the allotment of 87,500 NCDs of face value of ₹1 lakh each aggregating to ₹875 crore on private placement basis.

 

Company executives said that the amount will be used to develop mid-income housing projects and environmental, social and governance (ESG) aligned projects.

 

“Out of the ₹875 crore, we will use around ₹470 crore to repay the existing debt,” said Pradeep Aggarwal, founder and chairman at Signature Global.

 

The developer had a net debt of around ₹900 crore at the end of second quarter of this fiscal, according to its previous regulatory filings.

 

Aggarwal added that the remaining fund would be utilised for development of projects, including land acquisition.

 

“As an environmentally conscious developer, we at Signature Global are focusing on developing environmentally sustainable projects and are committed to fulfilling all the ESG requirements in all our future projects,” he added.

 

Having a coupon rate of 11 per cent, the tenure of the NCDs would be three years, two months and 30 days. This pegs the date of maturity for the instrument as January 15, 2029. The NCDs are listed on the exchanges.

 

The move also marks the first ever listed debt transaction of Signature Global, strengthening the company’s capital market presence in partnership with IFC.

 

IFC has previously made an equity investment in Signature Global and currently holds about 1 per cent equity stake in the realty firm.

 

Aggarwal added that going forward the developer would be focusing on its main areas of Dwarka Expressway, Sohna and Southern Peripheral Road (SPR) in Gurugram. He stated while the company remains interested in Delhi and Noida, any deals would depend on the opportunities they get there.

 

Signature Global chief executive officer (CEO) Rajat Kathuria said that the developer is sure to meet its pre-sales target of ₹12,500 crore for FY26, considering the strong launch pipeline for the next five months.

 

“We will be launching around 8 million square feet (msf) area for sales during the current and next quarters, with a combined revenue potential of around ₹14,000 crore,” he said.