Mindspace REIT raises Rs 500 cr through 10-year NCD issue
Mindspace REIT raises Rs 500 cr through 10-year NCD issue

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Mindspace REIT raises Rs 500 cr through 10-year NCD issue

Listed Real Estate Investment Trust Mindspace Business Parks REIT has raised Rs 500 crore through an issue of Non-Convertible Debentures (NCD) with tenure of 10 years.

Fully subscribed by one of India's leading life insurance companies, the issuance carries a fixed coupon of 7.63% per annum payable quarterly and holds AAA/Stable ratings from both CRISIL and ICRA

Proceeds from this issuance will be deployed towards refinancing existing borrowings.

"We manage a REIT where income is stable, long-term, and predictable, and our borrowing strategy reflects the same discipline…We are committed to long-term value creation through strong operating performance, judicious capital allocation and cost optimisation strategies,” said Ramesh Nair, CEO & MD, Mindspace REIT.

This debt capital raise is in line with Mindspace REIT’s plan to lock fixed rates for longer durations and ensure predictability of debt servicing costs, protection against interest rate volatility due to macroeconomic factors, and expansion of investor base.

"This 10‑year fixed‑coupon NCD is consistent with our strategy to shift a larger share of borrowings to fixed interest instruments and lock in longer tenures to ensure greater cash flow stability,” said Preeti Chheda, CFO, Mindspace REIT.

According to her, the REIT’s robust credit track record has enabled access to capital at competitive interest rates, despite the macroeconomic headwinds, supporting higher net distributable cash flows.

Including this transaction, Mindspace REIT, including its special purpose vehicles, has cumulatively raised over Rs 16,400 crore through capital market instruments, including NCDs, Commercial Papers (CPs), Green Bond, and Sustainability Linked Bonds (SLBs).

The REIT’S debt investor base includes mutual funds, insurance companies, pension funds, etc.

Mindspace Business Parks REIT owns office assets across Mumbai Region, Pune, Hyderabad, and Chennai. The portfolio has a total leasable area of 39.3 million sq ft comprising 32 million sq ft of completed area, 5.4 million sq ft of area under construction and 1.9 million sq ft of future development. The portfolio consists of 5 integrated business parks and 9 independent office assets.

Source: The Economic Times

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