Mindspace Business Parks REIT Raises INR 560 Crore Through Commercial Paper Issuance

1 min read     Updated on 25 Aug 2025, 10:04 PM
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Riya DeyBy ScanX News Team
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Overview

Mindspace Business Parks REIT has successfully raised INR 560 crore by issuing commercial papers. The issuance comprises 11,200 units with a face value of INR 5 lakh each and a tenor of 199 days. The commercial papers will be listed on BSE Limited's debt segment from August 25, 2025. This issuance is part of a larger approval to raise up to INR 2,800 crore through debt securities and commercial papers in multiple tranches. The move aligns with SEBI regulations and has been communicated to the National Stock Exchange of India Limited and BSE Limited.

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*this image is generated using AI for illustrative purposes only.

Mindspace Business Parks REIT , a prominent player in the commercial real estate sector, has successfully raised INR 560 crore through the issuance of commercial papers. This move is part of the company's broader strategy to secure funding for its operations and potential growth initiatives.

Key Details of the Issuance

Aspect Details
Issue Size INR 560 crore
Instrument Commercial Papers
Number of Units 11,200
Face Value INR 5 lakh per unit
Tenor 199 days
Issue Date August 22, 2025
Redemption Date March 09, 2026
Listing BSE Limited's debt segment (effective from August 25, 2025)

Strategic Funding Approach

This issuance is part of a larger approval by the Executive Committee of K Raheja Corp Investment Managers Private Limited, the manager of Mindspace REIT. The committee has authorized raising up to INR 2,800 crore through debt securities and commercial papers in multiple tranches. This latest issuance follows a previous approval of INR 1,800 crore, demonstrating the REIT's phased approach to capital raising.

Regulatory Compliance

The issuance adheres to the regulations set by the Securities and Exchange Board of India (SEBI) for Real Estate Investment Trusts and Listing Obligations and Disclosure Requirements. Mindspace REIT has duly informed the National Stock Exchange of India Limited and BSE Limited about this development, ensuring transparency in its financial activities.

Market Response

The commercial papers have been listed and admitted for trading on BSE Limited's debt segment, effective August 25, 2025. This listing provides liquidity to investors and reflects the market's acceptance of Mindspace REIT's debt instruments.

Implications for Investors

For investors, this issuance represents an opportunity to invest in short-term debt instruments backed by a reputable commercial real estate entity. The 199-day tenor offers a balance between liquidity and potentially attractive returns in the current market environment.

Mindspace Business Parks REIT's successful raising of INR 560 crore through commercial papers underscores its strong position in the market and its ability to access diverse funding sources. As the commercial real estate sector continues to evolve, such financial maneuvers may play a crucial role in supporting the REIT's operational and strategic objectives.

Historical Stock Returns for Mindspace business Parks Reit

1 Day5 Days1 Month6 Months1 Year5 Years
-0.05%+0.17%-0.46%+15.86%+24.18%+33.41%
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Mindspace REIT Raises ₹550 Crore Through IFC Sustainability-Linked Bond, Totaling ₹1,200 Crore in ESG Debt

2 min read     Updated on 20 Aug 2025, 04:19 PM
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Reviewed by
Jubin VergheseBy ScanX News Team
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Overview

Mindspace Business Parks REIT has raised ₹550 crore through a Sustainability-Linked Bond (SLB) issuance from the International Finance Corporation (IFC). This brings the company's total SLB issuance to ₹1,200 crore. The 8-year bond carries a 7.41% coupon rate and is set to mature on August 19, 2033. Mindspace REIT becomes the first Indian REIT to issue SLBs under SEBI's new ESG framework. The bond is linked to measurable ESG targets including reduction in greenhouse gas emissions, increase in green-certified areas, and reduction in energy intensity.

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*this image is generated using AI for illustrative purposes only.

Mindspace Business Parks REIT has successfully raised an additional ₹550 crore through a Sustainability-Linked Bond (SLB) issuance from the International Finance Corporation (IFC), the private sector investment arm of the World Bank Group. This latest fundraising brings the company's total SLB issuance to ₹1,200 crore, following its initial ₹650 crore SLB issuance in June 2024.

Pioneering ESG Compliance

The transaction marks a significant milestone in India's real estate sector, as Mindspace REIT becomes the first Indian Real Estate Investment Trust (REIT) to issue SLBs under the new Environment, Social and Governance (ESG) framework introduced by the Securities and Exchange Board of India (SEBI). This framework, outlined in SEBI's circular dated June 5, 2025, sets enhanced standards for transparency, independent review, and ongoing compliance in ESG debt issuances.

Key Details of the Bond Issuance

The SLB issuance carries the following characteristics:

Feature Details
Amount Raised ₹550.00 crore
Investor International Finance Corporation (IFC)
Tenure 8 years
Credit Rating [ICRA] AAA (Stable)
Second Party Opinion Bureau Veritas Industrial Services (India) Pvt. Ltd.
Coupon Rate 7.41% per annum (payable semi-annually)
Final Redemption Date August 19, 2033

Sustainability-Linked Structure

The SLB is directly tied to measurable ESG performance targets, ensuring accountability and impact. These targets include:

  • Reduction in greenhouse gas (GHG) emissions
  • Increase in the share of green-certified areas under management
  • Reduction in energy intensity

By linking financial outcomes to sustainability performance, Mindspace REIT is embedding ESG principles into the core of its growth strategy.

Management Commentary

Ramesh Nair, MD and CEO of Mindspace REIT, commented on the issuance: "With this issuance, we're taking a big step forward on our sustainability journey. Being the first REIT to raise Sustainability Linked Bonds under SEBI's new ESG framework shows our intent to lead from the front. Partnering with IFC gives us global backing, and it will help us drive energy efficiency, add more green-certified space, and build a portfolio that's ready for the future."

Imad N Fakhoury, Regional Director for South Asia at IFC, added: "IFC is pleased to deepen its partnership with Mindspace REIT through an additional investment, fuelling the growth of REITs as an asset class and strengthening India's real estate sector. By championing sustainable buildings and innovative financing, we are creating opportunities for developers, investors, and communities."

Mindspace REIT's Portfolio

Mindspace REIT, sponsored by the K Raheja Corp group, owns a quality office portfolio across four key office markets in India: Mumbai Region, Pune, Hyderabad, and Chennai. The REIT's portfolio includes:

  • Total leasable area of 38.1 million square feet
  • 31.0 million square feet of completed area
  • 3.7 million square feet under construction
  • 3.4 million square feet for future development
  • 5 integrated business parks and 6 quality independent office assets
  • Over 260 tenants, with most buildings Gold or Platinum Green Building Certified (IGBC/LEED)

This latest SLB issuance reinforces Mindspace REIT's commitment to sustainable development and positions it as a leader in ESG-compliant financing within India's real estate sector.

Historical Stock Returns for Mindspace business Parks Reit

1 Day5 Days1 Month6 Months1 Year5 Years
-0.05%+0.17%-0.46%+15.86%+24.18%+33.41%
Mindspace business Parks Reit
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