Prestige Estates Projects has successfully closed its debut ₹500-crore non-convertible debenture issuance. The company’s multi-tranche issuance of debentures has been rated A+ (long term positive) by ICRA.
The deal was upsized from the original ₹300 crore, to accommodate strong investor interest. With this, the deal has been split across three tranches of ₹150 crore, ₹300 crore and ₹50 crore. They will mature in July 2018 (36 months), July 2020 (60 months) and April 2018 (33 months), respectively.
‘Demonstrates strength’The first and third tranches carry a coupon rate of 11.35 per cent (equivalent to 11.24 per cent a year payable monthly), while the second tranche will pay 11.40 per cent a year (equivalent to 11.29 per cent per annum payable monthly).
Irfan Razack, Chairman and Managing Director, Prestige Estates, said, “The strong appetite for our credit from high quality investors in our debut NCD demonstrates the strength of our credit profile.”
Venkat K Narayana, Executive Director and CFO, Prestige Estates, said, “This transaction evinced strong interest from mutual funds... Funds will be used for expansion, acquisition and retirement of high cost debt.”