Rated AAA, Funded Fully: Embassy REIT Checks All Boxes with Debt Refinance

Image Source: Business Standard

Embassy Office Parks REIT, listed real estate investment trust of India and Asia's largest office REIT by size, has raised ₹15.5 billion by a mix of non-convertible debentures (NCDs) and term loan facilities. The funds will be utilized for refinancing outstanding Series V NCDs maturing in October 2024, as part of the REIT's consistent capital optimization strategy.

Fundraising Snapshot

Total Capital Raised: ₹15.5 billion
₹9 billion through issue of Series XI NCDs at 7.87% effective interest rate
₹6.5 billion through term loans from PSU and multinational banks at ~8% floating rate
Investor Response: The NCD issue was 3x oversubscribed, demonstrating strong institutional confidence
Credit Rating: "CRISIL AAA/Stable" rating assigned to the NCDs

Strategic Impact

Purpose: Refinancing of Series V NCDs falling due in October 2024
Expected Benefit: Reduced interest cost and enhanced debt maturity profile
CEO Comment: Embassy REIT CEO Aravind Maiya stated the refinancing "positions us to take advantage of future rate cuts and maintain a strong balance sheet"

About Embassy REIT

Portfolio: 51 million sq. ft. of area in 14 Bengaluru, Mumbai, Pune, NCR, and Chennai office parks
Tenants: More than 258 international companies
ESG Leadership: 5-star rated by GRESB and the British Safety Council

Sources: Business Standard, ET RealEstate, Embassy Office Parks