Embassy REIT raises Rs 1,050 crore via NCDs

5 Jun 2023 , 02:57 PM

Embassy Office Parks REIT has successfully raised Rs 1,050 crore through coupon-bearing Non-Convertible Debentures (NCDs). As the largest office REIT in Asia based on area, Embassy REIT plans to utilize the funds to refinance bank loans that require an interest reset in the upcoming months.

By securing this debt at a coupon rate of 7.77%, the REIT aims to achieve significant interest savings of approximately 138 basis points compared to the expected repriced interest rate. The NCDs will be listed on BSE Limited’s wholesale market.

The company said that the Debenture Committee of the Board of Directors to Embassy REIT accorded its approval for the allocation of these NCDs with a quarterly coupon rate of 7.77%. These NCDs have received a rating of ‘AAA/Stable’ from the rating agency CRISIL.

Ritwik Bhattacharjee, the Chief Investment Officer at Embassy REIT, highlighted the appeal of Embassy REIT’s AAA-rated balance sheet, proactive debt management, and exceptional creditworthiness, which consistently attract capital from Mutual Funds, Insurers, and Corporates.

Axis Bank Limited, Barclays Bank PLC, and ICICI Bank Limited played a crucial role as facilitators in the private placement, while Talwar Thakore & Associates was the legal counsel to Embassy REIT.

At around 2.49 PM, Embassy REIT was trading 0.33% lower at Rs 301.11, against the previous close of Rs 302.10 on NSE. The counter touched an intraday high and low of Rs 307.70 and Rs 301 respectively.

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