Embassy Office Parks REIT has announced the successful issuance of Rs2,000 crores through its Series XV Non-Convertible Debentures (NCDs), marking the first-ever 10-year NCD offering by an Indian REIT. The landmark move highlights Embassy REIT’s strong credit profile and its ability to tap into India’s debt capital markets with scale and confidence.
The debentures were priced at an effective coupon of 7.33%, featuring a step-up structure—7.25% for the first five years and 7.45% for the latter five, along with a put option at the 5-year mark, offering flexibility to investors. The proceeds will go toward refinancing existing debt, and are expected to yield interest savings of nearly 70 basis points annually.
The transaction was oversubscribed by 1.4x, with participation from over 15 top-tier institutional investors, including life insurance companies, pension funds, and mutual funds. Its structure was anchored by long-duration investors whose appetite aligned with the 10-year tenor.
Ritwik Bhattacharjee, CEO of Embassy REIT, shared: “We are delighted to pioneer the first-ever 10-year NCD issuance in India’s REIT market and raise Rs2,000 crores from leading institutions. This transaction optimally staggers our liability profile and enables us to prudently manage future debt maturities.”
The NCDs received “AAA/Stable” ratings from both CRISIL and CARE, reflecting strong underlying fundamentals and risk management practices. Legal guidance for the issuance was provided by Talwar Thakore & Associates.
