Nexus Select Trust announced on Tuesday that its board has approved the proposal to raise Rs 1,000 crore through non-convertible debentures (NCDs) on a private placement basis.

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The company’s Board of Directors approved the issuance of a total of 1 lakh NCDs through two tranches at its meeting held on June 6.

Nexus Select Trust will issue a total of 70,000 listed, rated, secured, redeemable, rupee-denominated NCDs having a face value of Rs 1 lakh each, aggregating to Rs 700 crore in the first tranche or ‘Tranche A’. The debentures will be issued for a tenure of three years.

The company’s Board also approved to issue 30,000 NCDs having a face value of Rs 1 lakh each for an aggregate amount of Rs 300 crore in the second tranche or ‘Tranche B’ for a total of five years.

Proceeds of this issue will be used for investments in the Special Purpose Vehicles (SPVs) of Nexus Select Trust through loans, shares and other securities, fully or partially refinance debt at SPVs of the company, and the refinancing of the debt of acquired assets and acquisition of assets.

It will also be utilised for refurbishment expenses, along with the requirements of working capital at underlying SPVs of Nexus Select Trust, and for general corporate purposes including fee payments and other expenses.

This exercise is a part of the Rs 2,350 crore fund raising approval that the manager of Nexus Select Trust, Nexus Select Mall Management Pvt. Ltd., had given last month through the issue of debt instruments.

Shares of Nexus Select Trust closed at Rs 105.78 apiece, up 0.52 percent, on BSE on Tuesday.