Mindspace Business Parks REIT successfully raised ₹500 crore through Non-Convertible Debentures (NCDs) with a 10-year tenure at a fixed coupon rate of 7.63% per annum, payable quarterly. According to reports from The Economic Times, the issuance was fully subscribed by one of India's leading life insurance companies, demonstrating strong investor confidence in the REIT's creditworthiness. Each NCD carries a face value of ₹1 lakh with the final redemption date set for May 6, 2036.
The NCDs carry AAA/Stable ratings from both CRISIL and ICRA, reflecting the REIT's strong credit profile. As reported by The Economic Times, the proceeds from this issuance will be deployed towards refinancing existing borrowings, which will enhance cost predictability and support long-term stability. The REIT's robust credit track record has enabled access to capital at competitive interest rates despite macroeconomic headwinds.
According to Ramesh Nair, CEO & MD of Mindspace REIT, as reported by The Economic Times, the borrowing strategy reflects the same discipline as the REIT's stable, long-term, and predictable income streams. The debt capital raise aligns with the REIT's plan to lock fixed rates for longer durations and ensure predictability of debt servicing costs. Preeti Chheda, CFO, emphasized that this strategy shifts a larger share of borrowings to fixed interest instruments to ensure greater cash flow stability.
This fundraising is a key part of Mindspace REIT's strategy to manage its overall debt and ensure it stays within its authorized borrowing limit. The REIT's framework permits consolidated borrowings to not exceed 33% of its total asset value, capping this at ₹15,700 crore. As of December 2025, the REIT's Gross Loan to Value (LTV) ratio stood at 28.3%, indicating ample room within its debt covenants. In April 2026, its Executive Committee approved plans to raise up to ₹15,700 crore through debt instruments, including these securities and commercial papers, following earlier approvals such as raising up to ₹11,500 crore in October 2025.
Mindspace Business Parks REIT owns office assets across Mumbai Region, Pune, Hyderabad, and Chennai, with a total leasable area of 39.3 million sq ft comprising 32 million sq ft of completed area, 5.4 million sq ft of area under construction, and 1.9 million sq ft of future development. As reported by The Economic Times, including this transaction, the REIT has cumulatively raised over ₹16,400 crore through capital market instruments, including NCDs, Commercial Papers, Green Bonds, and Sustainability Linked Bonds. The debt investor base includes mutual funds, insurance companies, and pension funds.
