Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT and the largest office REIT in Asia by area, has successfully raised Rs1,550 crores through a combination of Non-Convertible Debentures (NCDs) and term loan facilities. The proceeds will be used to refinance certain existing debt, resulting in annual interest savings of approximately 113 basis points (bps).
Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said, “We are pleased to announce the successful closure of this Rs1,550 crores fund raise, which saw strong participation from both mutual funds and leading banks. The Rs750 crore NCD issuance at a 6.97% coupon marks the lowest rate we have achieved in the past four years, and it reaffirms our position as a top-tier credit in India’s commercial real estate sector. This refinancing continues to support our strategy of optimally managing our balance sheet and positions us well to finance our future growth initiatives.”
The fund raise comprises Rs750 crores via Embassy REIT Series XIV NCDs, priced at a coupon of 6.97%, and a Rs800 crore term loan from a leading bank that is priced at a floating interest rate of 7.40% over a 15-year tenor. The NCDs, which received robust demand from institutional investors, especially mutual funds, were priced 6 bps lower than the offered rate due to strong market appetite.
Transaction Highlights
- Raised Rs750 crores through Embassy REIT Series XIV NCDs 2025 at an effective rate of 6.97%
- Strong demand from mutual funds drove pricing 6 bps lower than the initial offered rate
- Secured Rs800 crores in SPV-level term loans from a leading bank at 7.40% floating rate over 15 years
- Expected annual interest savings of ~113 bps
- NCDs rated “AAA/Stable” by CRISIL
Talwar Thakore & Associates served as the legal counsel to Embassy REIT.??
