Share Market Live

NSE

Real estate developer Mindspace Business Parks REIT has completed the issuance of Commercial Papers (CP) worth Rs 100 crore for a maturity of three months at an interest rate of 7.20 percent per annum.

The company has a Grade A office portfolio in four key office markets in India. Mindspace REIT’s Commercial Papers are rated Crisil A1+, the highest rating by Crisil.

The real estate developer said that this move is a part of their larger strategy to diversify their lender base and optimise borrowing costs and maturity profile of their well-staggered debt book.

The company also added that they were looking to explore opportunities to raise funds via the issuance of green bonds.

Mindspace Business Parks REIT is sponsored by the K Raheja Corp group. Its key markets are the Mumbai region, Pune, Hyderabad, and Chennai. The realty developer will use the funds for the working capital of its asset SPVs. The loan-to-value of Mindspace REIT stood at 16.8 percent as on September 30, 2022, the lowest amongst its peers.

With this move, Mindspace REIT further broadens its debt profile. At the time of its IPO, in August 2020, its 100 percent debt was in the form of Asset SPV-level bank borrowings. Over the past two years, Mindspace REIT has consciously diversified its lender portfolio and reduced its borrowing costs via multiple fixed-cost debenture issuances which are primarily subscribed by mutual funds, pension funds, and insurers.

In September this year, capital markets regulator SEBI allowed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue Commercial Papers. It enabled REITs to raise additional short-term funds through shorter tenor instruments at a potentially lower interest cost and swifter timelines.

Shares of Mindspace Business Parks REIT are trading 0.49 percent higher at Rs 340.41.

(Edited by : Rukmani Krishna)