Intime Properties Ltd, a part of Mumbai-based K Raheja Corp Group, has raised Rs 340 crore (or $55 million) through non-convertible debentures (NCD) in the form of commercial mortgage-backed securities (CMBS) to refinance debt, the company said in a statement.
K Raheja Corp holds 89 per cent stake in Intime with the balance 11 per cent held by Andhra Pradesh Industrial Infrastructure Corporation Ltd.
Intime operates Mindspace Cyberabad, an IT/ITeS focused integrated development at Madhapur near HITEC city, Hyderabad. The property is currently 99 per cent occupied by over 35 clients. Intime owns and operates three commercial office buildings in Mindspace IT Park, Hyderabad, with a total leasable area of 1.71 mn sq ft.
IDFC and Credit Suisse Securities (India) were lead arrangers for the issue.
The NCDs issued by the realtor was rated AAA(SO) rated and have nine year maturity with early redemption options at the end of fourth and sixth year. It has a coupon rate of 9.95 per cent.
The NCDs offer the issuer benefit of lock in fixed rate liabilities at competitive pricing and diversification of lender base.
It is the second realtor to issue CMBS in the market. North-based real estate major DLF Ltd had earlier raised Rs 900 crore through commercial mortgage-backed securities of its step-down subsidiaries DLF Emporio Ltd and DLF Promenade Ltd.
Under CMBS, funds available with the issuer during the tenure of the instrument are higher than lease rental-discounting loans from banks as these loans have a structure where principal repayment is amortised whereas CMBS instruments give the option of bullet repayment. Further, CMBS instruments have the benefit of fixed interest rates and usually have lower funding costs.
(Edited by Joby Puthuparampil Johnson)