Mumbai: (DIAL) has raised ₹3,500 crore through 15-year rupee-denominated non-convertible debentures (NCDs) to refinance its $522.6 million 6.125% dollar notes due in October 2026, according to people familiar with the development.




The NCDs carry an initial coupon of 8.71% a year, payable quarterly. The coupon is linked to the RBI repo rate, with an initial spread of 375 basis points, and will reset after five and 10 years.




India Infrastructure Finance Company Ltd (IIFCL) was the largest investor, subscribing ₹1,426 crore. NIIF Infrastructure Finance invested ₹550 crore, while , and subscribed ₹481 crore, ₹433 crore and ₹409 crore, respectively. SBI Capital Markets subscribed ₹200 crore.



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HDFC Bank and ICICI Bank were the arrangers. The key information document names HDFC Bank, ICICI Bank, IDFC First Bank and NIIF Infrastructure Finance as anchor investors, with a combined allocation of ₹1,050 crore.




The proceeds will be used for the full redemption, repurchase or refinancing of the $522.6 million notes due in 2026 and to meet issue-related costs.




After refinancing the October 2026 maturity, DIAL will have $500 million of dollar bonds due in June 2029. ICRA has said the company could partly repay the 2029 bonds through internal cash accruals and land monetisation and refinance the balance.




"DIAL has a moderately leveraged capital structure, with the presence of bullet repayments in the medium term, exposing the company to refinancing risk. It has major debt maturities due in October 2026 and June 2029," ICRA said in a report.



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DIAL is a joint venture between and Airports Authority of India. GMR Airports holds 74% and AAI 26%. The company operates Delhi's Indira Gandhi International Airport under a 30-year concession, extendable by another 30 years.