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new Delhi: Mindspace Business Park REIT ,Mindspace REIT), sponsored by the K Raheja Corp group, has completed the issuance of commercial paper worth Rs 100 crore for a maturity of three months at an interest rate of 7.20% per annum, the company said in a BSE filing.
The company’s CEO Vinod Rohira said, “Having successfully explored raising funds in the capital market by issuing multiple debentures, we are pleased to be the first Indian REIT To raise money by way of commercial papers.”
The funds will be used for the working capital requirements of Asset SPV of Mindspace REIT. Commercial papers are appraised Crisil A1+ by CRISIL.
Capital market regulator SEBI allowed in September 2022 real estate investment trust (REITs) and Infrastructure Investment Trusts (InvITs) will issue commercial paper. This offered an additional short-term fund raise for REITs through short-term instruments with potentially lower interest costs and faster timelines.
Mindspace REIT’s debt as of September 30, 2022 stood at 16.8%. At the time of its IPO, in August 2020, 100% of the company’s loan assets were in the form of SPV-level bank borrowings. With this move, it plans to further broaden its debt profile.
Over the last two odd years, Mindspace REIT has diversified its lender portfolio and reduced its borrowing cost through issuance of multiple fixed cost debentures, which were mainly subscribed by mutual funds, pension funds and insurers. are, the company said in a regulatory filing.
“This is part of our larger strategy to diversify our lender base and optimize the cost of borrowing and maturity profile of our well-segmented loan book. Going forward, as part of our larger ESG commitment, we Will also explore opportunities to raise funds through issuance of green bonds,” Rohira said.
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