Embassy Office Parks REIT has raised a term loan of Rs 1,000 crore from Bajaj Housing Finance Limited which will primarily be used to repay existing debt, the company said on February 16.
With this refinance, Embassy REIT achieves interest savings through around 60 basis points positive refinancing spread, and the long tenor loan helps extend its debt maturity profile, it said.
“Amidst a rising interest rate environment, we’re pleased to announce this debt raise of Rs 1,000 crores from a marquee NBFC at industry-leading terms,” Embassy REIT Chief Executive Officer Vikaash Khdloya said.
“With this refinance, our entire debt book is at fixed rates for an average of 18 months, demonstrating our active capital management to the benefit of our unitholders.”
Embassy REIT was well-positioned to finance its growth, given its access to an expanding capital pool that includes banks, mutual funds, insurers, FPIs and now NBFCs, he said.
“We are delighted to partner with Embassy REIT, and we hope to continue with this mutually beneficial partnership and look to strengthen the relationship further,” Bajaj Housing Finance Limited Managing Director Atul Jain said.
On January 25, 2023, the Board of Directors of Embassy Office Parks Management Services Private Limited, the manager to the Embassy Office Parks REIT had approved availing a term loan of Rs 1,000 crore for refinancing of debt availed by SPVs of the REIT and general corporate purposes.
Embassy REIT is India's first publicly listed Real Estate Investment Trust. It owns and operates a 43.6 million square feet portfolio of eight infrastructure-like office parks and four city-centre office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region (NCR). Its portfolio comprises 34.3 million square feet completed operating area.
Embassy REIT stock ended flat at Rs 309.45 on the National Stock Exchange.
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