Mindspace Business Parks REIT has raised 5.5 billion rupees ($66.7 million) through a debut green bond issue on Tuesday, per a term sheet seen by Reuters and corroborated by two bankers.
According to the bankers, this was the first time a real estate investment trust (REIT) in India had offered green bonds with three years and one-month maturity.
Mindspace Business Parks REIT invited bids for the issue earlier in the day and will pay a coupon of 8.02% every quarter
The issue has a step-up coupon adjustment option, which enables the coupon to rise by 25 basis points for every notch that the issue’s credit rating is downgraded.
Star Health and Allied Insurance Co was an anchor investor to the issue and subscribed 30% or 1.65 billion rupees of the total amount.
According to the term sheet, the issue’s proceeds will be utilized to finance new loans, develop and construct relevant green projects for the REIT’s special purpose vehicles, and refinance existing loans.
The issue will be settled on Wednesday, and ICRA has given the bonds a AAA rating. Trust Investment Advisors was the sole arranger of the issue.