Intime Properties raises Rs. 340 cr via NCD issue

Mumbai, August 06, 2014 – Intime Properties, part of the K Raheja Corp Group has raised Rs. 340 crore by issue of non-convertible debentures (NCD) in the form of Commercial Mortgage Backed Securities (CMBS) to refinance bank debt.

These fixed rate NCDs have nine year maturity with early redemption options, at par, at the end of 4th and 6th year and lessees are to directly remit the lease rentals and fit-out rentals into a trustee-monitored escrow account under the transaction, said the company in a statement.

Provision for debt service reserve account and performance based triggers to retain excess cashflow would also be included as part of the transaction, according to the company.

Lead arrangers for the deal were IDFC and Credit Suisse Securities (India).

The investors would be benefited by getting “access to a new class of security and sector which otherwise is dominated by loan products with a high rating,” said the company.