Embassy Office Parks REIT, India’s first listed real estate investment trust and Asia’s largest office REIT by area, has raised Rs 1,550 crore through a mix of non-convertible debentures (NCDs) and term loans. The funds will be used to refinance existing debt and are expected to bring down annual interest costs by around 113 basis points.

The fundraise includes Rs750 crore through Embassy REIT Series XIV NCDs, which were issued at a coupon rate of 6.97 per cent. It also secured a Rs 800 crore term loan from a leading bank, priced at a floating interest rate of 7.40 per cent over 15 years.

Mutual funds and banks show robust interest

The NCDs received high demand from institutional investors, especially mutual funds. This strong market appetite helped Embassy REIT price the NCDs 6 basis points lower than the originally offered rate.

Ritwik Bhattacharjee, CEO of Embassy REIT, said that Rs 1,550 crore fund raise saw strong participation from both mutual funds and leading banks. “The Rs 750 crore NCD issuance at a 6.97 per cent coupon marks the lowest rate we have achieved in the past four years, and it reaffirms our position as a top-tier credit in India’s commercial real estate sector,” he said.

CRISIL assigns top rating to NCDs

The newly issued NCDs carry a “AAA/Stable” rating from CRISIL, highlighting the company’s strong credit profile. Law firm Talwar Thakore & Associates acted as legal counsel for the transaction.

Embassy REIT owns and operates a 51.1 million square feet portfolio across key Indian cities including Bengaluru, Mumbai, Pune, NCR, and Chennai. Out of this, 40.3 million square feet is already operational and hosts over 270 global companies.