Embassy Office Parks REIT has raised Rs 2,000 crore through a 10-year non-convertible debenture (NCD) issuance, the first long-tenor issuance by a listed real estate investment trust in India, the company said in a release on July 25.
The debentures were priced at an effective coupon rate of 7.33 percent over the 10-year tenor, structured with a step-up coupon — 7.25 percent for the first five years and 7.45 percent for the remaining five years.
“We are delighted to pioneer the first-ever 10-year NCD issuance in India’s REIT market and raise Rs 2,000 crore from leading institutions. This transaction optimally staggers our liability profile and enables us to prudently manage future debt maturities,” chief executive officer Ritwik Bhattacharjee said.
The proceeds will be used to refinance certain debt and expected to result in annual interest savings of approximately 70 basis points.
The issuance was subscribe 1.4 times on demand from more than 15 institutional investors, including insurance companies, pension funds, and mutual funds. The 10-year structure matched the longer-duration investment appetite of these institutions, with the transaction anchored by large life insurance companies and pension funds.
The Embassy REIT Series XV NCDs 2025 are rated “AAA/Stable” by both Crisil and CARE ratings agency.
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