Mindspace REIT raises Rs 100 crore through commercial papers

NEW DELHI: Mindspace Business Parks REIT (Mindspace REIT), sponsored by K Raheja Corp
group, has completed issuance of commercial papers of 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.
Vinod Rohira, CEO of the company said, “After successfully exploring capital market fund
raising through issuance of multiple debentures, we are glad to be the first Indian REIT to raise
funds through commercial papers.”
The funds will be utilised towards the working capital requirements of Mindspace REIT’s asset
SPVs. The commercial papers are rated CRISIL A1+ by CRISIL.
In September 2022, capital markets regulator SEBI allowed real estate investment
trusts (REITs) and infrastructure investment trusts (InvITs) to issue commercial papers. This
offered an additional short term fund-raise avenue for REITs through shorter tenor instruments
at a potentially lower interest cost and swifter timelines.
Loan to value of Mindspace REIT stood at 16.8% as on September 30, 2022. At the time of its
IPO, in August 2020, 100% borrowings of the company were in the form of asset SPV level bank
borrowings. With this move, it plans to further broadens its debt profile.
Over the past two odd years, Mindspace REIT has diversified its lender portfolio and reduced its
borrowing costs via multiple fixed-cost debenture issuances which are primarily subscribed by
mutual funds, pension funds and insurers, the company said in the regulatory filing.
“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,” said
Rohira.