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Sunteck Realty Looks to Raise Rs 100 crore Through NCDs | Economic Times

Realty developer Sunteck Realty is looking to raise about Rs 100 crore through issuance of non-convertible debentures (NCDs), said a top company official. Of this, the Mumbai-based developer raised Rs 55 crore on Wednesday by issuing the debentures to public sector banks and institutional investors.

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Sunteck Realty Looks to Raise Rs 100 crore Through NCDs | Economic Times

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  1. Sunteck Realty Looks to Raise Rs 100 CroreThrough NCDs | Economic Times Realty developer Sunteck Realty is looking to raise about Rs 100 crore through issuance of non- convertible debentures (NCDs), said a top company official. Of this, the Mumbai-based developer raised Rs 55 crore on Wednesday 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. The company is looking for closure of the second tranche in the next two weeks' time. "We are pleased with the solid appetite for our credit paper from high quality institutional investors in our debut NCD issuance. The funds will act as an enabler for our company to diversify funding sources across maturity buckets, increase balance sheet strength and lower cost of capital," said Kamal Khetan, CMD, Sunteck Realty. Khetan expects the new source of funding to allow the company to focus on acquisition of opportunistic land parcels and development of stalled projects in the distressed assets space. The company is planning to use the NCD proceeds for swapping high-cost debt and augmenting 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. Several 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. The company has allotted 5,500, secured redeemable non-convertible debentures of Rs 1 lakh each, aggregating Rs 55 crore, on private placement basis. The NCDs would be listed on the Wholesale Debt Market Segment of the Bombay Stock Exchange. Sunteck Realty has been rated "A+" by rating agency India Ratings (Fitch Group). 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. For more details on http://economictimes.indiatimes.com/markets/bonds/sunteck-realty-looks-to- raise-rs-100-crore-through-ncds/articleshow/50573162.cms

  2. Contact Us: Sunteck Realty Limited Address: 5th Floor, Sunteck Centre, 37-40, Subhash Road, Vile Parle (E), Mumbai - 400057 Phone No: +91-22-42877800 Website: http://www.sunteckindia.com/ Email: info@sunteckindia.com

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