Signature Global Secures ₹875 Crore Funding from IFC for ESG-Focused Housing Projects

Signature Global (India) Limited has announced a significant fundraising achievement, securing ₹875 crore through a private placement of non-convertible debentures (NCDs). The International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, exclusively subscribed to this debt issuance, marking Signature Global's first listed debt transaction. The NCDs have been assigned a credit rating of 'A+' with a stable outlook by Care Edge Ratings and are listed on the BSE. They offer a coupon rate of 11% and are set to mature on January 15, 2029, providing a tenure of over three years.

The company plans to deploy the raised capital strategically towards developing mid-income housing projects and developments that align with Environmental, Social, and Governance (ESG) standards. A portion of the funds will also be utilized for refinancing existing debt, optimizing the company's capital structure.

Signature Global is recognized for its strong commitment to sustainability, boasting 19 EDGE-certified developments, among the highest in the Indian real estate sector. The company also achieved a commendable score of 84 in its initial assessment by the Global Real Estate Sustainability Benchmark (GRESB).

Ranked among India's top listed real estate companies by sales in FY25, Signature Global reported pre-sales of ₹1.03 lakh crore in the previous fiscal and has set an ambitious target of ₹1.25 lakh crore for FY26. The company maintains a robust development pipeline, with 17.1 million sq ft in recently launched projects, 9.2 million sq ft under construction, and plans for an additional 24.5 million sq ft over the next two to three years.

Impact This fundraising provides substantial liquidity and financial backing for Signature Global, enabling it to pursue its growth objectives, particularly in ESG-compliant and affordable housing segments. The IFC's investment signifies strong confidence in the company's business model, execution capabilities, and commitment to sustainable development. This could positively influence investor sentiment and provide a competitive edge in securing future projects. Rating: 7/10

Difficult Terms: Private Placement: The sale of securities directly to a select group of investors, rather than offering them to the general public. Non-Convertible Debentures (NCDs): A type of bond that cannot be converted into shares of the issuing company. They offer fixed interest payments and return of principal at maturity. International Finance Corporation (IFC): A member of the World Bank Group, it is the largest global development institution focused on the private sector in developing countries. EDGE-certified: Refers to Excellence in Design for Greater Efficiencies (EDGE), a green building standard that promotes resource efficiency in energy, water, and materials. Environmental, Social, and Governance (ESG): A set of criteria used to evaluate a company's performance in areas such as environmental impact, social responsibility, and corporate governance. Care Edge Ratings: A credit rating agency that assesses the creditworthiness of companies and their debt instruments. Coupon: The annual interest rate paid on a debt instrument, such as a debenture or bond. Pre-sales: Sales of properties that are made before the construction is completed or even started. Pipeline: The total amount of future real estate projects a developer has planned, under development, or under construction.