Embassy Office Parks REIT Raises 1050 Crore Indian Rupees Via NCD Issue

Bengaluru: 

Embassy office parks REIT, the first listed REIT in India and the largest office REIT in Asia by area, has issued coupon-bearing Non-Convertible Debentures ("NCDs") totaling Rs 1050 crores.

Embassy REIT will use the proceeds from this debt offering to refinance bank loans whose interest rates will reset within the next few months. Embassy REIT will save 138 basis points ("bps") in interest through this refinance at a 7.77% coupon rate, relative to the anticipated repricing interest rate.

"Our AAA-rated balance sheet, proactive debt management, and industry-leading creditworthiness continue to attract investment capital from Mutual Funds, Insurers, and Corporations." This NCD issuance, priced at 7.77%, enables us to partially refinance floating rate loans prudently, and we will continue to monitor our floating rate debt book to minimise the impact of potential interest rate increases on unitholders, according to Embassy REIT's Chief Investment Officer, Ritwik Bhattacharjee.

The NCDs will be listed on BSE Limited's wholesale debt market. The debenture committee of the board of directors of the manager of the Embassy REIT approved the issuance of these NCDs with a quarterly coupon of 7.77% on 5th June 2023. The rating agency CRISIL has given these NCDs a "AAA/Stable" rating, the company said.