Mindspace Business Parks REIT Allots ₹560 Crore NCDs at 7.1652% Coupon with 3-Year Maturity
Mindspace REIT Completes ₹560 Crore NCD Allotment
Mindspace Business Parks REIT allotted ₹560 crore in non-convertible debentures (NCD 17) on March 5, 2026 through private placement, with full utilization reported. The K Raheja Corp-backed REIT raised the funds as part of its broader debt capital raising strategy approved in January 2026.
Coupon Rate and Terms
The debentures carry a 7.1652% coupon rate and a 3-year maturity, making them fixed-income instruments well-suited to investors seeking medium-term returns. This debt capital raise is consistent with Mindspace REIT's strategy to lock in fixed rates for longer durations, ensuring predictability of debt servicing costs and protection against interest rate volatility.
Regulatory Compliance and Borrowing Limits
The allotment followed an earlier approval dated April 29, 2026, subject to the condition that aggregate consolidated borrowings do not exceed 33% of total assets. This regulatory cap ensures the REIT maintains disciplined leverage and preserves financial flexibility for future growth and distributions to unitholders.
Capital Deployment and Financial Position
Proceeds from the issuance will be deployed towards refinancing the REIT's existing borrowings. Mindspace's net debt stood at ₹11,572.9 crore as of March 2026, and the refinancing activity supports the REIT's objective of optimizing its capital structure and debt servicing profile.
Broader Debt Portfolio Context
Including this transaction, Mindspace REIT and its SPVs have cumulatively raised approximately ₹16,400 crore through capital market instruments, including NCDs, Commercial Papers, Green Bonds, and Sustainability Linked Bonds. This diversified funding base reflects confidence from institutional investors and aligns with the REIT's long-term growth objectives.
K Raheja Corp's Role and REIT Overview
K Raheja Corp owns Mindspace and operates Mindspace Office Parks as a real estate investment trust (REIT). Mindspace Business Parks REIT, sponsored by K Raheja Corp group, was listed on the Indian bourses in August 2020 and owns quality office assets located in four key office markets of India, namely the Mumbai Region, Pune, Hyderabad, and Chennai.
The portfolio has a total leasable area of 39.0 msf, comprising 31.9 msf of completed area, 3.6 msf of area under construction, and 3.5 msf of future development. The portfolio consists of 5 integrated business parks and 9 quality independent office assets with superior infrastructure and amenities.