Embassy REIT Raises Rs 2,000 Cr in Debt to Refinance NCDs, Sees Strong Investor Interest

New Delhi / October 8, 2024: Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced on Tuesday that it has successfully raised Rs 2,000 crores of coupon-bearing debt at an interest rate of about 7.95%. Embassy REIT will utilize the proceeds from this debt raise to repay its Non-Convertible Debentures (NCDs) of Rs 2,000 crores maturing in October 2024. 

Aravind Maiya, Chief Executive Officer of Embassy REIT, said, “We are pleased to announce this fundraise of Rs 2,000 crores, which has seen strong participation from mutual funds and banks. The attractive pricing on the term loans and the 3x oversubscription on the listed NCD issuances cements our reputation as the industry’s leading credit. This refinancing continues to allow us to optimally control our balance sheet and positions us to take advantage of future rate cuts to raise capital.”

Embassy REIT successfully issued Rs 900 crores of Series XI NCDs in 2024, receiving strong interest from various investors, including mutual funds, life, and general insurers. The NCDs, offered at an effective interest rate of 7.87%, were oversubscribed by three times, leading to a cost saving of approximately 10 basis points. The issued NCDs were assigned a “CRISIL AAA/Stable” rating by CRISIL. 

Additionally, Embassy REIT secured Rs 1,100 crores in term loans from leading public sector and multinational banks at a floating coupon rate of around 8.0%. The favorable pricing for both the NCDs and term loans reflects the strong demand for REIT credit among banks seeking to actively deploy their capital. The proceeds from these issuances will be utilized to refinance existing Series V NCDs maturing in October 2024.