Mindspace Business Parks REIT raises Rs 100 cr debt for working capital requirements

Mindspace Business Parks REIT has raised Rs 100 crore debt for working capital requirements.

In a regulatory filing, Mindspace Business Parks REIT informed that it has completed an issuance of commercial papers of Rs 100 crore for a maturity of three months at an interest rate of 7.2 per annum.

The funds will be utilised towards the working capital requirements of Mindspace REIT's asset SPVs (special purpose vehicle). Loan to value of Mindspace REIT stood at 16.8 percent as on September 30, 2022.

In September this year, capital markets regulator Sebi allowed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue commercial papers. The move would enable REITs an additional short-term fundraising avenue through shorter tenor instruments at a potentially lower interest cost and swifter timelines.

"After successfully exploring capital market fundraising through issuance of multiple debentures, we are glad to be the first Indian REIT to raise funds through commercial papers," Vinod Rohira, CEO of Mindspace REIT, said.

"This is part of our larger strategy to diversify our lender base and optimise borrowing costs and maturity profile of our well-staggered debt book. Going forward, as part of our larger ESG commitment, we will also explore opportunities to raise funds via issuance of green bonds," he added.

Mindspace Business Parks REIT, sponsored by K Raheja Corp group, listed on the Indian bourses in August 2020. The REIT owns office portfolios located in the Mumbai region, Pune, Hyderabad, and Chennai.

It has a total leasable area of 31.9 million square feet and is one of the largest Grade-A office portfolios in India. The portfolio consists of five integrated business parks and five quality independent office assets.