Debt With a View—Embassy REIT Raises ₹6,500 Cr to Build Bigger & Bolder

Image Source: Telegraph India

India’s largest office real estate investment trust, Embassy Office Parks REIT, has received board approval to raise up to ₹6,500 crore in debt. The move is part of a strategic initiative to refinance existing liabilities, support working capital, and fund expansion projects across its premium commercial properties in cities like Bengaluru, Mumbai, Pune, NCR, and Chennai.

What’s in the Debt Plan?

The debt will be raised through a mix of non-convertible debentures (NCDs) and commercial papers (CPs)

Two tranches of CPs have already been approved:
₹350 crore for 316 days
₹325 crore for 326 days
The total outstanding CPs will not exceed 10% of Embassy REIT’s consolidated debt, ensuring prudent financial management
Funds will be used for debt repayment, capital expenditure, and liquidity enhancement

This marks another step in Embassy REIT’s ongoing effort to optimize its capital structure and maintain a strong credit profile.

Business Snapshot

Embassy REIT owns and operates a 51 million sq. ft. portfolio of 14 office parks, housing over 250 global companies. The portfolio includes:

37.7 million sq. ft. of completed operating area
Four operational business hotels and two under construction
A 100 MW solar park supplying renewable energy to tenants

The REIT has consistently attracted strong investor interest, with recent debt issuances oversubscribed by 3x, reflecting market confidence in its fundamentals.

Sources: MoneyWorks4Me, Economic Times, Hindustan Times