Sunteck Realty is looking to raise around Rs 100 crore through NCDs

Q: Realty developer Sunteck Realty is looking to raise about Rs 100 crore through issuance of non-convertible debentures.

Diwakar Shetty,

15th January 2016

Real estate News in Mumbai

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It has seen that many real estate developers with ongoing projects are looking to use funds raised through private equity and institutional investors to refinance their high-cost loans at a lower rate of interest.

ajit pandey,

15th January 2016

Comment

Right Ajit,
The company has allotted 5500, secured redeemable non-convertible debentures of Rs 1 lakh each, aggregating Rs 55 crore, on private placement basis.

Currently, Sunteck Realty has a portfolio of total 24 projects spread over 25 million sq-ft. Of these, five million sq-ft space in 13 projects is under sale and execution across Mumbai, Goa and Nagpur.

Rajatrawal, Mumbai

15th January 2016

It is also come to know that the Sunteck Realty is looking for closure of the second chunk in the next two weeks. The company is pleased with the solid appetite for their credit paper from high quality institutional investors in their debut NCD issuance.

Rajatrawal, Mumbai

15th January 2016

Comment

Right Rajat.......and this fund will act as an enabler for their company to diversify funding sources across maturity buckets, increase balance sheet strength and lower cost of capital. Khetan expects the new source of funding to allow the company to focus on acquisition of opportunistic land parcels and development of obstruct projects in the slow and troubled realty market

Dayananda, Mumbai

15th January 2016

As per the news, the company is planning to use the NCD proceeds for swapping high-cost debt and increasing its medium to long-term resources. The NCDs will also enable the company to extend its maturity profile and would lead to efficient asset-liability management.

Rajatrawal, Mumbai

15th January 2016

The company has raised Rs.55 crore on by issuing the debentures to public sector banks and institutional investors. This is Sunteck's maiden NCD issue and the funds have been raised at a coupon rate of 11.75% per annum payable annually with a tenor of four years.

Dayananda, Mumbai

15th January 2016

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