Mindspace Business Parks REIT, owner and developer of office spaces in key markets across the country, said on March 15 that it has completed the first REIT level Green Bond issuance in India, raising Rs 550 crore.
Green bonds with maturities of three years and one month were offered by the company at a fixed quarterly coupon of 8.02 percent per annum payable quarterly, Mindspace Business Parks REIT informed the stock exchanges in a regulatory filing.
According to the company, the funds raised will be used to refinance loans taken by one of the Asset SPVs to fund the eligible green projects.
Furthermore, it stated that the issuance has been arranged by Trust Investment Advisers Private Limited. Insurers, mutual funds, and other investor classes participated in the issuance. For the issuance, Shardul Amarchand Mangaldas & Co. is serving as legal counsel.
Recently, Mindspace REIT published its first green financing framework, which allows the company and/or its asset SPVs to issue green financial securities in the form of bonds or debentures.
Mindspace Business Parks REIT CEO Vinod Rohira said the green finance is one more step towards generating long-term value for stakeholders through an ESG-focused business model.
Rohira, said, “We are excited to complete the first Green Bond issuance by an Indian REIT and integrate green financing in our business and projects. With this issuance, our collective green financing availed has increased to over Rs 12 billion. This issuance further reiterates our commitment to building responsible business by setting up newer sustainability benchmarks. Today, over 90 percent of our portfolio is Green Certified and we continue to develop sustainable spaces for the future. This green financing is just another step to achieve our vision - To be a sustainability leader in the real estate sector by creating long-term value for stakeholders through ESG focused business strategy.”
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.