Embassy Office Parks REIT, the country's first publicly listed real estate investment trust sponsored by Blackstone and Embassy Group, on Monday said it has successfully raised Rs 1,050 crore through coupon-bearing non-convertible debentures (NCDs).

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Through this re-finance at a 7.77 percent coupon, Embassy REIT will be able to secure c.138 basis points in interest savings, compared to the expected interest rate when repriced. The NCDs will be listed on the wholesale debt market of the Bombay Stock Exchange.

According to the company, it will utilise the proceeds from this debt raise to re-finance bank loans, which are due for an interest reset in the coming months.

Ritwik Bhattacharjee, chief investment officer at Embassy REIT, said this NCD issuance will enables them to partly refinance floating rate loans prudently and that they "will continue to monitor our floating rate debt book to minimise the impact of potential interest rate increases to unitholders".

The debenture committee, under the board of directors of the manager of Embassy REIT, approved the allotment of these NCDs. Ratings agency CRISIL has assigned a AAA/Stable rating to these NCDs.

Axis Bank Ltd, Barclays Bank PLC, and ICICI Bank Ltd served as arrangers on the private placement, and Talwar Thakore & Associates served as the legal counsel, Embassy REIT added.

Embassy REIT owns and operates a 45 million square-foot portfolio of nine infrastructure-like office parks and four city‑centre office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region.

The portfolio comprises 34.3 million square feet of the completed operating area and is home to around 230 of the world’s leading companies. The portfolio also comprises strategic amenities, including four operational business hotels, two under‑construction hotels, and a 100 MW solar park supplying renewable energy to tenants.

First Published:Jun 5, 2023 4:59 PM IST