India-based Mindspace Business Parks REIT has raised ₹500 crore through a 10-year non-convertible debenture (NCD) issuance, as it looks to refinance existing debt and secure long-term funding at fixed interest rates.
The company said the issuance, which carries a fixed annual coupon of 7.63%, was fully subscribed by a domestic life insurance firm. Interest payments will be made on a quarterly basis. The bonds have received top-tier “AAA/Stable” ratings from CRISIL and ICRA, indicating a high degree of safety regarding timely servicing of financial obligations.
Proceeds from the fundraising will primarily be used to refinance existing borrowings. The move is part of the real estate investment trust’s broader strategy to extend its debt maturity profile while increasing the proportion of fixed-rate liabilities, helping shield it from potential interest rate volatility.
Mindspace REIT, which owns and operates a portfolio of office parks across key Indian cities, has been actively tapping capital markets to optimise its financing structure. With the latest issuance, the company and its associated special purpose vehicles have cumulatively raised around ₹16,400 crore through a mix of instruments, including NCDs, commercial papers, green bonds and sustainability-linked bonds.
Analysts note that such refinancing exercises are becoming more common among real estate investment trusts seeking to lock in borrowing costs amid evolving rate cycles. By shifting towards longer-tenure and fixed-rate debt, companies aim to enhance financial predictability and reduce exposure to fluctuations in borrowing costs.
The successful subscription also reflects continued institutional appetite for highly rated corporate debt in India, particularly from long-term investors such as insurers, who seek stable returns over extended periods.
The transaction underscores the growing maturity of India’s REIT market and its increasing integration with domestic debt capital markets.
