Mindspace REIT Raises ₹500 Crore via 10-Year NCDs at 7.63% Coupon

New Delhi, May 6: Mindspace REIT has raised ₹500 crore through a 10-year non-convertible debenture issuance, fully subscribed by a domestic insurer. The move is aimed at extending debt maturity and locking in fixed interest costs.

NCD Details

The issuance, fully subscribed by a domestic life insurance company, carries a fixed coupon of 7.63% per annum, payable quarterly. The debentures have been rated AAA/Stable by CRISIL and ICRA, indicating the highest level of safety for investors.

Use of Proceeds

The proceeds from the fundraise will be used to refinance existing borrowings, as the office REIT looks to extend its debt maturity profile and increase the share of fixed-rate borrowings. This strategy helps reduce exposure to interest rate fluctuations.

Cumulative Fundraising

With this transaction, the company (including its special purpose vehicles) has cumulatively raised around ₹16,400 crore through various capital market instruments such as NCDs, commercial papers, green bonds and sustainability-linked bonds. Khaitan & Co advised Mindspace REIT as legal counsel for this transaction.