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 ₹1,550 crores through a combination of Non-Convertible Debentures (NCDs) and term loan facilities. The proceeds will be used to refinance certain existing debt, resulting in annual interest savings of approximately 113 basis points (bps).
The fund raise comprises ₹750 crores via Embassy REIT Series XIV NCDs, priced at a coupon of 6.97%, and a ₹800 crore term loan from a leading bank that is priced at a floating interest rate of 7.40% over a 15-year tenor. The NCDs, which received robust demand from institutional investors, especially mutual funds, were priced 6 bps lower than the offered rate due to strong market appetite.
Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said,
“We are pleased to announce the successful closure of this ₹1,550 crores fund raise, which saw strong participation from both mutual funds and leading banks. The ₹750 crore NCD issuance at a 6.97% coupon marks the lowest rate we have achieved in the past four years, and it reaffirms our position as a top-tier credit in India’s commercial real estate sector. This refinancing continues to support our strategy of optimally managing our balance sheet and positions us well to finance our future growth initiatives.”
Transaction Highlights
- Raised ₹750 crores through Embassy REIT Series XIV NCDs 2025 at an effective rate of 6.97%
- Strong demand from mutual funds drove pricing 6 bps lower than the initial offered rate
- Secured ₹800 crores in SPV-level term loans from a leading bank at 7.40% floating rate over 15 years
- Expected annual interest savings of ~113 bps
- NCDs rated “AAA/Stable” by CRISIL
Talwar Thakore & Associates served as the legal counsel to Embassy REIT.
About Embassy REIT
Embassy REIT is India’s first publicly listed Real Estate Investment Trust and the largest office REIT in Asia, by area. Embassy REIT owns and operates a 51.1 msf portfolio of 14 office parks in India’s best-performing office markets of Bengaluru, Mumbai, Pune, the National Capital Region (‘NCR’) and Chennai. Embassy REIT’s portfolio comprises 40.3 msf completed operating area and is home to 272 of the world’s leading companies. The portfolio also comprises strategic amenities, including four operational business hotels, two under‑construction hotels, and a 100 MW solar park supplying renewable energy to tenants. Embassy REIT’s industry leading ESG program has received multiple accolades from renowned global institutions and was awarded a 5-star rating both from the British Safety Council and GRESB. Embassy REIT was included in the 2023 Dow Jones Sustainability Indices, making it the first REIT in India to be recognised for its sustainability initiatives by a leading global benchmark. For more information, please visit www.embassyofficeparks.com.
