Nexus Select Trust raises Rs 1,000 cr via AAA-rated NCDs at 7.90% to refinance mall debt
India's first listed retail REIT raised Rs 1,000 crore through AAA-rated NCDs at a 7.90% blended rate — Rs 700 cr (3-yr, 7.86%) and Rs 300 cr (5-yr, 8.00%) — to refinance SPV-level bank loans, cutting interest costs by up to 60 bps. Portfolio spans 17 consumption centres, ~9.8 mn sq ft GLA, 2,800+ stores across 14 cities.
What happened
Nexus Select Trust, India's first listed retail REIT, raised Rs. 1,000 crore via AAA-rated NCDs at 7.90% to refinance SPV-level bank loans, saving up to 60 bps.
Key facts
- Rs. 1,000 crores NCDs
- 7.90% blended rate
- Rs. 700 crores at 7.86% (3-yr)
- Rs. 300 crores at 8.00% (5-yr)
- 60 bps interest savings
- 17 consumption centres
- ~9.8 million sq ft GLA
- 14 cities
- 2,800+ stores
- 1,000+ brands
Why this matters
Tapping the bond market at sub-8% rates demonstrates strong credit access that can fund future consumption-centre acquisitions or expansion beyond the current 14-city footprint.
What to watch
- RBI policy stance & 10-yr G-sec yield direction
- AAA corporate bond spread movements
- Nexus DPU/distribution announcements next two quarters
- Mall occupancy & tenant sales growth across the 17 centres
- New REIT NCD filings with SEBI
- Consumption/retail footfall data trends
- Nexus to refinance remaining SPV bank loans via bond market in tranches over next 2-4 quarters
- Track DPU guidance upgrade in next earnings call citing interest savings
- Peer REITs (Embassy, Mindspace, Brookfield) tap NCD market for similar refinancing
- Rating agencies reaffirm AAA, anchoring future low-cost issuance
- Possible follow-on capital raise or acquisition announcement using freed balance-sheet capacity