The first listed Estate Investment Trust (REIT) in India, Embassy Office Parks REIT, announced in a press release on Monday that it has successfully raised debt of Rs 1,050 crore through non-convertible debentures (NCDs). 

The monies raised will be used to refinance bank loans that will be reset in the coming months. Embassy REIT anticipates significant interest savings of approximately 138 basis points (bps) versus the estimated interest rate upon repricing. The NCDs have been rated AAA or Stable by CRISIL. 

The Series VII NCDs have a two-year tenure and a 7.77% quarterly coupon rate and have been approved by the Debenture Committee of the Board of Directors of the Manager to Embassy REIT. The NCDs will be listed on the wholesale debt market of BSE Limited. 

The Chief Investment Officer (CIO) at Embassy REIT, Ritwik Bhattacharjee, in the press release, said that the NCD issuance would enable the company to refinance floating rate loans prudently partly, and they will continue to monitor our floating rate debt book to minimise the impact of potential interest rate increases to unitholders.

Embassy REIT owns and operates a 45 million sq feet portfolio of high-quality office parks and city‑centre office buildings in India’s best-performing office markets of Bangalore, Mumbai, Pune, and the Delhi NCR.  

Axis Bank Limited, Barclays Bank PLC, and ICICI Bank Limited served as arrangers to facilitate this debt raise. Talwar Thakore & Associates provided legal counsel to Embassy REIT, ensuring compliance with regulations and legal requirements.