Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has successfully raised Rs1,050 Crs of coupon-bearing Non-Convertible Debentures (“NCDs”). Embassy REIT will utilize the proceeds from this debt raise to refinance bank loans, which are due for an interest reset in the coming months. Through this refinance at 7.77% coupon, Embassy REIT will be able to secure c.138 basis points (“bps”) interest savings, compared to the expected interest rate when repriced. The NCDs will be listed on the wholesale debt market of BSE Limited.
Ritwik Bhattacharjee, Chief Investment Officer at Embassy REIT, said, “We are pleased to announce the closing of this fundraise of Rs 1,050 Crs, which has seen strong participation from institutional investors. Our AAA-rated balance sheet, proactive debt management and industry-leading creditworthiness continues to attract capital from Mutual Funds, Insurers, and Corporates. This NCD issuance, priced at 7.77%, enables us to partly refinance floating rate loans prudently, and we will continue to monitor our floating rate debt book to minimize the impact of potential interest rate increases to unitholders.”
Earlier, the Debenture Committee of the Board of Directors of the Manager to Embassy REIT approved the allotment of these NCDs at a 7.77% quarterly coupon. The rating agency CRISIL has assigned “AAA/Stable” rating to these NCDs. Issuance of Rs 1,050 crores of Embassy REIT Series VII NCDs 2023 at a 7.77% quarterly coupon with a 2-year tenure. The proceeds to be primarily used to refinance bank loans. Annual interest savings of c.138 bps secured through this refinance. Axis Bank Limited, Barclays Bank PLC and ICICI Bank Limited served as arrangers on the private placement and Talwar Thakore & Associates served as the legal counsel to Embassy REIT.?
