Brigade Enterprises Ltd has entered into an Investment Framework Agreement with the International Finance Corporation (IFC) to jointly invest in eligible middle-income housing projects.
Under the arrangement, Venusta Ventures Pvt Ltd, a wholly owned subsidiary of Brigade Enterprises, proposes to issue unsecured, rated, redeemable, rupee-denominated non-convertible debentures (NCDs) to IFC in one or more tranches.
Investment to support residential development
The NCDs are proposed to be listed on the wholesale debt market segment of the BSE.
The agreement sets out the framework for investments by Brigade Enterprises and IFC in the construction and development of eligible residential projects, including a project being developed by Venusta Ventures.
IFC to have customary lender rights
IFC will have rights customarily provided to lenders, including the right to appoint a director to the board of Venusta Ventures and the right to restrict changes in the subsidiary’s capital structure.
The arrangement does not involve the issue of equity shares to IFC. The financial institution will not hold any shares in Venusta Ventures as a result of the transaction.
Transaction not a related-party deal
Brigade Enterprises said the transaction with IFC is not a related-party transaction.
The proposed financing arrangement is aimed at supporting the development of housing projects catering to the middle-income segment.