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Mindspace Business Parks REIT has accepted bids worth INR 5 billion for a bond issue with a maturity of two years and one month, according to bankers involved in the transaction. The bonds carry a coupon of 7.6335%, payable quarterly. The REIT had invited commitment bids during the day and received the full issue size reported by bankers. The issue has been rated AAA by Crisil. Mindspace REIT has continued to access the debt market while funding its commercial property portfolio and ongoing capital expenditure. Its credit ratings have remained at the highest level in recent assessments.
Mumbai-based Mindspace Business Parks REIT has accepted bids worth INR 5 billion for bonds maturing in two years and one month, according to two bankers familiar with the issue.
The bonds will carry a coupon of 7.6335%, with interest payable on a quarterly basis. The REIT had invited commitment bids during the day and accepted the bids for the reported issue size.
The bond issue has received a Crisil AAA rating, reflecting the rating agency's assessment of the REIT's credit profile. Crisil reaffirmed Mindspace REIT's AAA rating with a stable outlook in its latest rating assessment. The agency has also maintained its A1+ rating on the REIT's commercial paper programme.
Mindspace REIT has been an active issuer in the non-convertible debenture market. Crisil's recent rating assessment covered non-convertible debentures aggregating INR 6,090 crore, while its commercial paper programme stood at INR 3,000 crore. ICRA has also assigned an AAA rating with a stable outlook to the REIT's issuer and certain non-convertible debenture programmes.
The REIT's borrowing activity comes as it continues to fund capital expenditure across its commercial property portfolio. According to Crisil, consolidated gross debt stood at INR 13,023 crore at the end of fiscal 2026, compared with INR 10,134 crore a year earlier. The increase was linked mainly to debt drawn for ongoing capital expenditure.
Mindspace REIT's operating performance has also supported its credit profile. Its revenue increased about 26% year-on-year to INR 3,243 crore in fiscal 2026, while net operating income rose about 29% to INR 2,664 crore. Committed occupancy improved to 94% at the end of fiscal 2026 from 91.2% a year earlier.
The portfolio comprises 17 commercial office, information technology park and special economic zone assets spread across about 36 million square feet. The REIT also has 6.6 million square feet of under-construction developments and another 1.9 million square feet of planned development, according to Crisil.
More recently, Mindspace REIT reported 0.9 million square feet of gross leasing and 0.7 million square feet of area re-leased in the first quarter of fiscal 2027. The re-leasing spread was 10.7%, while the average rent for gross leasing was INR 83 per square foot.
The latest bond issue adds to Mindspace REIT's existing debt-raising activity and comes against a backdrop of continued leasing and development across its office portfolio. The company did not provide an immediate comment on the bond issue when contacted by Reuters.
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