Strategic Fundraising Move
Embassy Office Parks REIT has successfully raised Rs 20 billion through 10-year non-convertible debentures (NCDs), marking a significant step in its capital strategy. The bonds carry a quarterly coupon of 7.25% and include a 5-year put option, offering flexibility to investors and aligning with the REIT’s long-term refinancing plans.
Key Highlights
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* The NCDs are rated AAA by Crisil and Care Ratings, reflecting strong creditworthiness
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* Funds will be used to refinance existing debt and support ongoing capital expenditure
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* The issuance attracted bids from mutual funds, insurance firms, and pension funds
Market Impact and Outlook
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* The move is expected to improve Embassy REIT’s debt maturity profile and reduce refinancing risks
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* With net debt to gross asset value at 32%, the REIT maintains healthy leverage metrics
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* Embassy REIT continues to benefit from strong occupancy and rental growth across its Grade-A office portfolio
Sources: The Hindu BusinessLine, Economic Times Realty, Care Ratings