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Corporate Press Release

Embassy REIT Successfully Raises ₹2,000 crores Debt at ~7.95% to Refinance Upcoming Non-Convertible Debentures Maturity 

Embassy REIT Successfully Raises ₹2000 crores Debt at ~7.95%

Bengaluru, India, October 8, 2024 : 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 ₹2,000 crores of coupon-bearing debt at an interest rate of ~7.95%. Embassy REIT will utilize the proceeds from this debt raise to repay its Non-Convertible Debentures (“NCDs”) of ₹2,000 crores maturing in October 2024.

Aravind Maiya, Chief Executive Officer of Embassy REIT, said, 

“We are pleased to announce this fundraise of ₹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.”

Transaction Highlights 

  • NCD Issuance of ₹900 crores of Embassy REIT Series XI NCDs 2024 with effective interest rate of 7.87%
    • Robust demand from Mutual Funds, Life and General Insurers resulting in NCD subscription of 3x
    • Oversubscription led to a savings of ~10 basis points on the offered rate
    • “CRISIL AAA/Stable” rating assigned by rating agency CRISIL to the NCDs issued
  • ₹1,100 crores of term loans from leading PSU & MNC Banks at ~8.0% floating coupon
    • Pricing reflects strong demand for REIT credit by banks looking to actively deploy capital
  • All proceeds to be used to refinance existing Series V NCD maturing in October 2024

Talwar Thakore & Associates served as the legal counsel to Embassy REIT.

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