Mindspace Business Parks REIT weighs fundraising via non-convertible debt securities

Mindspace Business Parks REIT has announced plans to evaluate fundraising via non-convertible debt securities, reinforcing its strategy to diversify financing sources while maintaining prudent leverage. The move follows prior approvals and issuances, reflecting a consistent approach to tapping debt markets for portfolio growth, refinancing, and liability management across Grade-A office assets.

Key highlights:

• Board consideration: Proposal to raise funds via non-convertible debt securities, aligning with ongoing liability optimization and growth needs.
• Recent issuance: ₹1,200 crore NCDs issued with quarterly coupons, 3-year tenor, and listed, rated, secured structure; face value ₹100,000 per debenture.
• Leverage discipline: Framework to keep consolidated borrowings within defined thresholds relative to asset value, supporting balance-sheet resilience.
• Use of proceeds: Refinancing, capex, and portfolio enhancement across business parks, with flexibility to time debt markets efficiently.
• Investor signalling: Regular market access and transparent covenants underscore credit discipline and access to institutional debt pools.

The contemplated fundraising underscores Mindspace REIT’s proactive capital strategy pairing stable rental cash flows with structured debt to sustain growth and distributions, while preserving credit quality.

Sources: ScanX News; Mindspace Business Parks REIT exchange filing; MarketScreener