Mindspace REIT raises Rs 100-cr via commercial papers

Mindspace Business Parks REIT announced that is has issued commercial papers of Rs 100 crore for a maturity of three months at an interest rate of 7.20% per annum.

CRISIL has rated the Mindspace REIT's commercial papers as 'CRISIL A1+', the highest rating by CRISIL.

The funds will be utilised towards the working capital requirements of Mindspace REIT's Asset SPVs. Loan to value of Mindspace REIT stood at 16.8% as on 30 September 2022, lowest amongst its peers.

In September this year, SEBI allowed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue commercial papers.

Vinod Rohira, CEO, 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. 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.

Mindspace Business Parks REIT is engaged in a real estate investment trust. It is backed by Mumbai-based real estate company K Raheja Corp and private equity firm Blackstone.

The company's consolidated net profit slipped 34.6% to Rs 78.60 crore despite of 61.35 jump in net sales to Rs 684.50 crore in Q2 FY23 over Q2 FY22.

The scrip rose 0.45% to currently trade at Rs 340.28 on the BSE.

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