India's Mindspace Business Parks raises 5.5 bln rupees via debut green bond - bankers

ICRA

14/03/2023 10:50

By Bhakti Tambe
       MUMBAI, March 14 (Reuters) - India's Mindspace Business
Parks REIT  MINS.NS  has raised 5.5 billion rupees ($66.7
million) through a debut green bond issue on Tuesday, per a term
sheet seen by Reuters and corroborated by two bankers.
    The company offered green bonds maturing in three years and
one month marking the first such offering by any real estate
investment trust (REIT) in India, the bankers said. 
    Mindspace Business Parks REIT invited bids for the issue
earlier in the day and will pay a coupon of 8.02% on a quarterly
basis. 
    The issue has a step-up coupon adjustment option that allows
the coupon to increase 25 basis points for every notch credit
rating downgrade. 
    Further, in the event of a default, the company will pay an
additional interest of 2% per annum over the coupon on the
outstanding amount for the defaulting period. 
    Star Health and Allied Insurance Co was an anchor investor
to the issue and subscribed 30% or 1.65 billion rupees of the
total amount. 
        The proceeds from the issue will be used to provide
loans to the special purpose vehicles of the REIT for
refinancing existing loans and construction and development of
relevant green projects, according to the term sheet. 
    The bonds are rated AAA by ICRA and the settlement of the
issue will be on Wednesday. Trust Investment Advisors was the
sole arranger to the issue. 
 ($1 = 82.4875 Indian rupees)

 (Reporting by Bhakti Tambe; Editing by Swati Bhat and Dhanya
Ann Thoppil)
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