NEW DELHI: Embassy Office Parks REIT (Embassy REIT) has raised ₹1,550 crore 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 crore via Embassy REIT Series XIV NCDs, priced at a coupon of 6.97%, and a ₹800 crore term loan from a 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 the company 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. This refinancing continues to support our strategy of optimally managing our balance sheet and positions us well to finance our future growth initiatives.”
Talwar Thakore & Associates served as the legal counsel to Embassy REIT.
