Latest news with #EmbassyOfficeParksREIT
Reuters
3 days ago
- Business
- Reuters
India's investment trusts to expand debt fundraising as yields drop, analysts say
MUMBAI, July 21 (Reuters) - Debt fundraising by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling interest rates continue to fuel strong investor demand, analysts said. The real estate investment trusts (REIT) and infrastructure investment trusts (InvIT) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database. "Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates. "The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting institutional investors seeking yield-bearing, asset-backed instruments." Corporate bond yields have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates. Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the bond market. Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks. Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm. The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns. Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers. "The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility. With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform. ($1 = 86.1700 Indian rupees)
Economic Times
16-07-2025
- Business
- Economic Times
India's Embassy REIT to tap debt market with Rs 2,000 crore bond sale, sources say
India's Embassy Office Parks REIT is in talks with bankers to raise 20 billion rupees ($232.79 million) via the issuance of five-year corporate bonds, three sources aware of the matter said on Wednesday. ADVERTISEMENT The real estate investment trust will look to close the funding round before the end of this month, the sources said requesting anonymity as the talks are private. The debt sale could attract strong demand from mutual funds as well as some insurance companies, as the notes are rated 'AAA' by Crisil, they said. The firm did not reply to a Reuters email seeking comment. Embassy REIT will tap the bond market for the second time this year after it raised 7.50 billion rupees in June through the sale of 21-month bonds at a coupon of 6.9650%, payable on a quarterly basis. "Since the company is targeting a larger quantum as compared to the June issue, they have gone for a slightly higher tenor to attract demand from insurance companies," one of the sources said. ADVERTISEMENT The coupon on this bond issue has not been decided. The ratings continue to factor in exposure to refinancing risks and susceptibility to volatility in the real estate sector, resulting in fluctuations in rental rates and occupancy, rating agency Crisil said. ADVERTISEMENT Currently, the company has outstanding bonds worth around 85 billion rupees, as per Crisil. ($1 = 85.9125 Indian rupees) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
16-07-2025
- Business
- Time of India
India's Embassy REIT to tap debt market with Rs 2,000 crore bond sale, sources say
India's Embassy Office Parks REIT is in talks with bankers to raise 20 billion rupees ($232.79 million) via the issuance of five-year corporate bonds, three sources aware of the matter said on Wednesdarces say Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's Embassy Office Parks REIT is in talks with bankers to raise 20 billion rupees ($232.79 million) via the issuance of five-year corporate bonds, three sources aware of the matter said on real estate investment trust will look to close the funding round before the end of this month, the sources said requesting anonymity as the talks are debt sale could attract strong demand from mutual funds as well as some insurance companies, as the notes are rated 'AAA' by Crisil, they firm did not reply to a Reuters email seeking REIT will tap the bond market for the second time this year after it raised 7.50 billion rupees in June through the sale of 21-month bonds at a coupon of 6.9650%, payable on a quarterly basis."Since the company is targeting a larger quantum as compared to the June issue, they have gone for a slightly higher tenor to attract demand from insurance companies," one of the sources coupon on this bond issue has not been ratings continue to factor in exposure to refinancing risks and susceptibility to volatility in the real estate sector, resulting in fluctuations in rental rates and occupancy, rating agency Crisil the company has outstanding bonds worth around 85 billion rupees, as per Crisil.($1 = 85.9125 Indian rupees)
Time of India
11-07-2025
- Business
- Time of India
Bain Capital sells 1.9% unitholding in Embassy REIT for ₹691 crore
NEW DELHI: Private investment firm Bain Capital on Thursday divested a 1.9 per cent unitholding in Embassy Office Parks REIT for Rs 691 crore through an open market transaction. US-based Bain Capital through its affiliate APAC Company XXIII sold a little over 1.78 crore units, amounting a 1.87 per cent unitholding in Bengaluru-based Embassy Office Parks REIT ( Real Estate Investment Trust ), as per bulk deal data on the BSE. The units were disposed of at an average price of Rs 388 apiece, taking the deal value to Rs 691.41 crore. Details of the buyers of Embassy Office Parks REIT units could not be ascertained on the exchange. The units of Embassy Office Parks REIT slipped 1.95 per cent to close at Rs 390.16 each on the BSE. Last month, Embassy Office Parks REIT said it has successfully raised Rs 1,550 crore through the issue of debentures and term loans to refinance its existing debt and save interest costs. The fundraise comprises Rs 750 crore through NCDs, priced at a coupon of 6.97 per cent, and a Rs 800 crore term-loan from a leading bank that is priced at a floating interest rate of 7.40 per cent over a 15-year tenor. Embassy REIT owns and operates a 51.1 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, Delhi-NCR and Chennai. Its portfolio comprises 40.3 million square feet of completed operating area.
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Business Standard
10-07-2025
- Business
- Business Standard
Bain Capital divested 1.9% stake in Embassy Office Parks REIT for ₹691 cr
Private investment firm Bain Capital on Thursday divested a 1.9 per cent unitholding in Embassy Office Parks REIT for Rs 691 crore through an open market transaction. Press Trust of India New Delhi Private investment firm Bain Capital on Thursday divested a 1.9 per cent unitholding in Embassy Office Parks REIT for ₹691 crore through an open market transaction. US-based Bain Capital through its affiliate APAC Company XXIII sold a little over 1.78 crore units, amounting a 1.87 per cent unitholding in Bengaluru-based Embassy Office Parks REIT (Real Estate Investment Trust), as per bulk deal data on the BSE. The units were disposed of at an average price of ₹388 apiece, taking the deal value to ₹691.41 crore. Details of the buyers of Embassy Office Parks REIT units could not be ascertained on the exchange. The units of Embassy Office Parks REIT slipped 1.95 per cent to close at ₹390.16 each on the BSE. Last month, Embassy Office Parks REIT said it has successfully raised ₹1,550 crore through the issue of debentures and term loans to refinance its existing debt and save interest costs. The fundraise comprises ₹750 crore through NCDs, priced at a coupon of 6.97 per cent, and a ₹800 crore term-loan from a leading bank that is priced at a floating interest rate of 7.40 per cent over a 15-year tenor. Embassy REIT owns and operates a 51.1 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, Delhi-NCR and Chennai. Its portfolio comprises 40.3 million square feet of completed operating area.
