Embassy Office Parks REIT Raises ₹2000 Crore Via 10 Year NCDs

Embassy Office Parks REIT’s ₹2,000 Crore Debt Refinancing Triumph

In a strategic financial move, Embassy Office Parks REIT has successfully raised ₹2,000 crore through a thoughtfully structured 10-year Non-Convertible Debenture (NCD) issuance. The offering is priced at an effective coupon rate of 7.33% over its decade-long tenure, featuring a step-up structure: 7.25% for the first five years, increasing modestly to 7.45% for the following five years.

The capital amassed will be channelled towards refinancing existing debt, a move designed to bring substantial annual interest savings of approximately 70 basis points (bps). This prudent refinancing effort not only trims financing costs but also skillfully staggers the REIT’s liability profile, ensuring stronger future debt maturity management.

Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, emphasized the strategic nature of this transaction, stating:

“The transaction optimally staggers our liability profile and enables us to prudently manage future debt maturities.”

The 10-year NCD issuance garnered remarkable enthusiasm from the investment community, particularly attracting long-term investors such as insurance companies and pension funds who value the alignment of the tenure with their extended investment horizons.

With robust demand driving the issue, it was oversubscribed by 1.4 times, drawing participation from a wide spectrum of over 15 leading institutional investors — including:

• insurance companies
• pension funds
• mutual funds

This diverse investor base reflects strong market confidence in Embassy Office Parks REIT’s financial stewardship and strategic growth plans.