Embassy Office Parks makes history with ₹2,000cr NCD issuance
Embassy Office Parks REIT, India's biggest listed real estate trust, has pulled off a major first by raising ₹2,000 crore through a 10-year Non-Convertible Debenture (NCD).
This move not only shows their strong financial reputation but also sets a new benchmark for Indian REITs in long-term fundraising.
Offer was hot: it was oversubscribed by 1.4 times
These NCDs come with top "AAA/Stable" ratings and offer an average coupon of 7.33%—starting at 7.25% for five years and stepping up to 7.45%.
The offer was hot: it was oversubscribed by 1.4 times, drawing interest from more than 15 big institutional players like life insurers and pension funds.
Plus, there's a put option after five years for added flexibility.
Embassy will use proceeds to refinance old debt
The funds are going toward refinancing old debt, which will help Embassy save on interest costs—about 70 basis points less each year.
CEO Ritwik Bhattacharjee called this a move that "strengthens our balance sheet" and fits right in with the long-term growth story of India's commercial real estate sector.