Embassy REIT raises Rs 2,000 crore debt through NCDs priced at 7.21%
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Real estate investment trust Embassy Office Parks REIT has raised Rs 2,000 crores of debt through the issuance of Non-Convertible Debentures (NCDs). The proceeds from this issuance will be used to refinance certain existing debt obligations.The listed REIT has secured these coupon-bearing funds at an interest rate of approximately 7.21% for a tenure of three years.This refinancing initiative is expected to generate a saving of around 77 basis points in interest costs when compared to the rate being paid on the existing debt being refinanced, the REIT said. The refinancing is a part of the REIT's ongoing capital management strategy.The transaction saw participation from 11 institutional investors. The investor base included a range of financial institutions who subscribed to the issue, reflecting continued engagement from debt market participants.'This transaction showcases Embassy REIT's robust balance sheet…We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalize on future growth opportunities,' said Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT In view of the current interest rate environment, the REIT has decided to exercise the call option on its Series IX NCDs amounting to Rs 500 crores. These NCDs carry a coupon of 8.03%. The early repayment of this tranche will take place on June 4, ahead of the scheduled maturity date of September 4.Embassy REIT owns and operates a portfolio measuring 51.1 million square feet. This portfolio comprises 14 office parks located across the major Indian office markets of Bengaluru, Mumbai, Pune, the National Capital Region (NCR), and Chennai. Of the total, 40.3 million square feet is completed and operational, and it is occupied by 272 tenant companies.The portfolio further includes four operational business hotels, two hotels currently under construction, and a 100 MW solar park that supplies renewable energy to its tenants.
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