India's Mindspace Business Parks REIT has raised Rs 550 crore ($66.7 million) through a debut green bond issue on Tuesday, per a term sheet seen by Reuters and corroborated by two bankers.
The company offered green bonds maturing in three years and one month marking the first such offering by any real estate investment trust (REIT) in India, the bankers said.
Mindspace Business Parks REIT invited bids for the issue earlier in the day and will pay a coupon of 8.02% on a quarterly basis.
The issue has a step-up coupon adjustment option that allows the coupon to increase 25 basis points for every notch credit rating downgrade.
Further, in the event of a default, the company will pay an additional interest of 2% per annum over the coupon on the outstanding amount for the defaulting period.
Star Health and Allied Insurance Co was an anchor investor to the issue and subscribed 30% or Rs 165 crore of the total amount.
The proceeds from the issue will be used to provide loans to the special purpose vehicles of the REIT for refinancing existing loans and construction and development of relevant green projects, according to the term sheet.
The bonds are rated AAA by ICRA and the settlement of the issue will be on Wednesday. Trust Investment Advisors was the sole arranger to the issue.