Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) (‘Embassy REIT’), India’s first listed REIT and the largest office REIT in Asia by area, announced today that it has successfully raised Rs2,000 crores of coupon-bearing debt at an interest rate of ~7.21% for a 3 year-tenor. The proceeds will be used to refinance certain existing debt and will save c.77 basis points (bps) in interest costs compared to the current rate.
Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said, “We are pleased to announce this Rs2,000 crore fundraise at an attractive rate of ~7.21%. This transaction showcases Embassy REIT’s fortress balance sheet and reinforces our standing as the leading credit in India’s commercial real estate sector. We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalize on future growth opportunities.”
Transaction Highlights
NCD Issuance of Rs2,000 crores of Embassy REIT Series XIII NCDs 2025 with effective interest rate of 7.21%
Robust demand from institutional investors with 11 different investors participating
Given the favorable interest rate environment, the REIT has opted to exercise the call option on its Series IX NCDs of Rs500 crores, carrying a coupon of 8.03%, for early repayment on June 4, 2025, ahead of the original maturity date of September 4, 2025
Secured Annual interest savings of c.77 bps
CRISIL has assigned “AAA/Stable” rating to the NCDs issued
Talwar Thakore & Associates served as the legal counsel to Embassy REIT.??
