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  1. Prestige Estates Projects raises Rs 500 cr via bonds

Prestige Estates Projects raises Rs 500 cr via bonds

Prestige Estates Projects (PEPL) has raised R500 crore through its debut bond issue, according to a source close to the deal.

By: | Mumbai | Published: July 28, 2015 12:17 AM

Prestige Estates Projects (PEPL) has raised Rs 500 crore through its debut bond issue, according to a source close to the deal.

“The company raised R500 crore in three tranches. It is the debut issue by the company and it has been rated A+ by Icra. I think it is the hightest real estate deal for a rating of this sort that happened at least over the last seven months,” a source close to the deal said.

Ratings agency Icra said in a report that the rated NCD programme has a tenor of five years, with repayments in three unequal installments at the end of 33rd, 36th and 60th months respectively and the coupon is to be serviced on a quarterly basis.

According to the source, HSBC was the sole arranger to the deal.

“The coupon rates stood at 11.35% for the three-year tranche, 11.40% for the five-year tranche with a three-year put/call, and 11.35% for the 2-year 9-month tranche,” the source said adding that this is believed to be the largest bond deal in the real estate sector this year.

“The NCDs are backed by the security of balance receivables and unsold stock from five identified residential projects of PEPL,” Icra said in the report.

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