Embassy REIT Raises Rs 1,050 Crore through NCDs to Refinance Bank Loans
Embassy Office Parks REIT, India’s first listed REIT, announced on Monday that it has successfully raised INR 1,050 crore through the issuance of non-convertible debentures (NCDs). The funds raised will be utilized to refinance existing bank loans, which are scheduled for an interest reset in the near future. This strategic move is expected to enable Embassy Office Parks to save a significant 138 basis points on interest costs, as stated by Ritwik Bhattacharjee, the company’s Chief Investment Officer.
The NCDs were issued at a quarterly coupon rate of 7.77 percent, attracting participation from various institutional investors including mutual funds, insurers, and corporates. The two-year issue garnered substantial interest, further solidifying Embassy REIT’s position in the market.
Embassy REIT possesses and operates an impressive portfolio encompassing nine infrastructure-like office parks and four city-center office buildings across key cities such as Bangalore, Mumbai, Pune, and the National Capital Region. The total area covered by this portfolio amounts to an impressive 45 million square feet. Within this vast space, around 230 companies have found their home, benefiting from the state-of-the-art facilities and amenities provided.
In addition to the office parks, Embassy REIT also includes four fully operational business hotels, with two more currently under construction. Moreover, the company has established a 100 MW solar park to supply renewable energy to its tenants, showcasing its commitment to sustainability and environmentally-friendly practices.
The successful completion of this debt issuance not only reinforces Embassy Office Parks REIT’s financial position but also positions the company for future growth and expansion. With the newly acquired funds, Embassy REIT is well-equipped to navigate the evolving real estate landscape and continue delivering value to its stakeholders.
Embassy REIT possesses and manages a portfolio of eight office parks and four city-center office buildings in India’s most thriving office markets, including Bengaluru, Mumbai, Pune, and the National Capital Region (NCR). This portfolio spans an impressive 45.0 million square feet (msf) and exhibits infrastructure-like qualities.
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