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Embassy Office Parks REIT has raised INR 1,550 crore through a mix of non-convertible debentures and term loans to refinance its existing liabilities. The fresh capital is expected to reduce annual interest costs by around 113 basis points. The funding includes INR 750 crore via debentures at a 6.97% coupon and INR 800 crore through a 15-year bank loan at a floating rate of 7.40%. This move aligns with the company's long-term strategy to strengthen its balance sheet and support future expansion across its office parks portfolio in major Indian cities.
Embassy Office Parks REIT has successfully raised INR 1,550 crore through a combination of Non-Convertible Debentures (NCDs) and term loans to refinance a portion of its existing debt. The company disclosed in a regulatory filing that the move is aimed at reducing its interest costs and optimising its capital structure. Advertisement
The fundraise includes INR 750 crore through NCDs at a fixed coupon rate of 6.97%, and an INR 800 crore term loan from a leading bank. The loan comes with a floating interest rate of 7.40% and a long tenor of 15 years. The refinancing is expected to bring down annual interest costs by approximately 113 basis points.
According to Embassy REIT's Chief Executive Officer, Ritwik Bhattacharjee, the decision reflects the company's continued focus on prudent financial management. He said this step further supports their strategy of managing the balance sheet effectively while positioning the firm to fund future growth opportunities.
The REIT, which is India's first publicly listed real estate investment trust, currently manages a portfolio of 51.1 million square feet across five key cities Bengaluru, Mumbai, Pune, Delhi-NCR, and Chennai. Of this, 40.3 million square feet is already completed and operational. The portfolio largely comprises Grade-A office spaces spread across 14 large business parks.
This financial step not only lowers borrowing costs but also gives Embassy REIT more flexibility in allocating capital toward new developments and acquisitions. It is one of several measures the company has taken in recent years to improve its funding profile amid shifting interest rate conditions and evolving investor expectations in the commercial real estate sector.
Source PTI
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