Latest news with #EmbassyREIT
Time of India
2 days ago
- Business
- Time of India
Embassy REIT raises ₹1,550 crore of debt
NEW DELHI: Embassy Office Parks REIT ( Embassy REIT ) has raised ₹1,550 crore through a combination of non-convertible debentures (NCDs) and term loan facilities. The proceeds will be used to refinance certain existing debt, resulting in annual interest savings of approximately 113 basis points (bps). The fund raise comprises ₹750 crore via Embassy REIT Series XIV NCDs , priced at a coupon of 6.97%, and a ₹800 crore term loan from a bank that is priced at a floating interest rate of 7.40% over a 15-year tenor. The NCDs, which received robust demand from institutional investors, especially mutual funds, were priced 6 bps lower than the offered rate due to strong market appetite. Ritwik Bhattacharjee , chief executive officer of the company said, "We are pleased to announce the successful closure of this ₹1,550 crores fund raise, which saw strong participation from both mutual funds and leading banks. The ₹750 crore NCD issuance at a 6.97% coupon marks the lowest rate we have achieved in the past four years. This refinancing continues to support our strategy of optimally managing our balance sheet and positions us well to finance our future growth initiatives." Talwar Thakore & Associates served as the legal counsel to Embassy REIT.
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Business Standard
2 days ago
- Business
- Business Standard
Embassy REIT raises ₹1,550 crore througj NCDs and term loan facilities
Bengaluru-headquartered Embassy Office Parks REIT (Embassy REIT), India's first listed real estate investment trust, announced it has successfully raised ₹1,550 crore through a mix of non-convertible debentures (NCDs) and term loan facilities. The proceeds will be used to refinance existing debt, resulting in estimated annual interest savings of approximately 113 basis points, the company said in a statement on Monday. The fundraise includes ₹750 crore via Embassy REIT Series XIV NCDs, priced at a 6.97 per cent coupon, and an ₹800 crore term loan from a leading bank at a floating rate of 7.40 per cent with a 15-year tenor. The NCDs saw strong demand from institutional investors, particularly mutual funds, and were ultimately priced 6 basis points below the offered rate due to high market interest. Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said, 'We are pleased to announce the successful closure of the fundraise, which saw strong participation from both mutual funds and leading banks. The ₹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. This refinancing continues to support our strategy of optimally managing our balance sheet and positions us well to finance our future growth initiatives.' Embassy REIT, the largest office REIT in Asia by area, has a portfolio of about 51.1 million square feet spanning 14 office parks located in India's top-performing commercial markets—Bengaluru, Mumbai, Pune, the National Capital Region (NCR), and Chennai. Of this, 40.3 million square feet is completed and operational, hosting over 270 of the world's leading companies. The company's portfolio also includes strategic amenities such as four operational business hotels, two hotels under construction, and a 100 MW solar park that provides renewable energy to its tenants.
Economic Times
3 days ago
- Business
- Economic Times
Embassy REIT Secures ₹1,550 Crore Debt at Four-Year Low
Embassy Office Parks REIT, India's leading listed REIT and Asia's largest office REIT by area has raised ₹1,550 crore through a combination of Non-Convertible Debentures (NCDs) and term loan facilities, is earmarked for refinancing existing debt and is projected to deliver annual interest savings of approximately 113 basis points (bps). ADVERTISEMENT The strategic financial move includes ₹750 crore raised through Embassy REIT Series XIV NCDs, which were priced at a coupon rate of 6.97%. The issuance saw demand from institutional investors, particularly mutual funds, pushing the pricing 6 bps lower than the initial offered rate and underscoring strong market appetite. In addition to the NCDs, Embassy REIT secured an ₹800 crore term loan from a prominent bank, structured at a floating interest rate of 7.40% over a 15-year tenor. Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, expressed his satisfaction with the outcome. "The fund raise saw strong participation from both mutual funds and leading banks. The ₹750 crore NCD issuance at a 6.97% 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. This refinancing continues to support our strategy of optimally managing our balance sheet and positions us well to finance our future growth initiatives." Embassy REIT's ability to secure debt at such a competitive rate, particularly the NCDs at a four-year low, highlights the growing confidence of institutional investors in India's commercial real estate sector, especially in Grade A office assets. Achieving a 6.97% coupon rate for NCDs, amidst fluctuating interest rates, signals the REIT's credit strength and the perceived stability of its underlying assets. Pioneered by Embassy REIT in 2019, the Indian REIT market has matured, offering investors a regulated avenue to participate in income-generating real estate. Embassy REIT's extensive portfolio, spanning 51.1 million sq ft across 14 office parks in key markets such as Bengaluru, Mumbai, Pune, NCR, and Chennai, is a significant draw. Its completed operating area of 40.3 million sq ft houses 272 multinational corporations, providing a stable rental income stream crucial for servicing debt. The REIT's asset base and sustainability profile are further enhanced by strategic amenities like operational business hotels and a 100 MW solar park. This refinancing aligns with a broader industry trend where well-managed REITs are actively optimizing their capital structures to enhance unitholder value. Lowering borrowing costs directly translates to improved distributable cash flow, a key metric for REIT performance. The estimated annual interest savings of approximately 113 bps from this refinancing will directly contribute to this. ADVERTISEMENT Embassy Office Parks REIT has been very active in recent months, demonstrating strong operational and financial performance. In May 2025, the REIT had also raised ₹2,000 crore via NCDs priced at 7.21% for a three-year tenor, also aimed at refinancing existing obligations and generating interest cost savings, showcasing a consistent strategy of leveraging debt markets for balance sheet Q4 FY25 and the full financial year 2025, Embassy REIT exceeded its initial leasing guidance for FY2025 by 22%, with 6.6 million sq ft leased across 98 deals. Revenue from operations and Net Operating Income (NOI) grew by 10% year-on-year to ₹4,039 crores and ₹3,283 crores respectively. Distributions to unitholders for FY2025 totaled ₹2,181 crores (₹23.01 per unit), an 8% year-on-year increase, with a projection of double-digit distribution growth for FY2026. The portfolio occupancy stood at a strong 91% by value, with Mumbai at 100%, Bengaluru at 92% and Chennai at 95%. ADVERTISEMENT Separately, in April 2024 acquisition of Embassy Splendid TechZone, a 5 million sq ft premium business park in Chennai, expanding their footprint in a key growth market. In March 2025, Embassy REIT invested ₹100 crore to support the development of the Kadubeesanahalli Metro Station in Bengaluru, securing 30-year naming rights and enhancing connectivity for its leasing deals include 2.07 lakh sq ft to global cybersecurity firm Rubrik at Embassy TechVillage in Bengaluru in January 2025, and approximately 1.4 million sq ft, including expansion options, to Commonwealth Bank of Australia at Embassy Manyata in Bengaluru in August 2024. Global Capability Centers (GCCs) continue to be a strong demand driver for their properties.
Time of India
3 days ago
- Business
- Time of India
Embassy REIT Secures ₹1,550 Crore Debt at Four-Year Low
Synopsis Embassy Office Parks REIT successfully raised ₹1,550 crore through NCDs and term loans to refinance existing debt, projecting annual interest savings of 113 bps. The NCD issuance, priced at a competitive 6.97%, saw strong institutional demand. This strategic move supports Embassy REIT's balance sheet management and positions it for future growth, reflecting investor confidence in India's commercial real estate sector.
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Business Standard
3 days ago
- Business
- Business Standard
Embassy REIT secures ₹1,550 cr via NCDs, loans to refinance existing debt
In a regulatory filing on Monday, the company said it has "raised Rs 1,550 crore through a combination of Non-Convertible Debentures (NCDs) and term-loan facilities" Press Trust of India Bengaluru Embassy Office Parks REIT has successfully raised Rs 1,550 crore through the issue of debentures and term loans to refinance its existing debt and save interest costs. In a regulatory filing on Monday, the company said it has "raised Rs 1,550 crore through a combination of Non-Convertible Debentures (NCDs) and term-loan facilities". "The proceeds will be used to refinance certain existing debt, resulting in annual interest savings of approximately 113 basis points (bps)," it added. 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. Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said, "This refinancing continues to support our strategy of optimally managing our balance sheet and positions us well to finance our future growth initiatives." 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. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
