Debt

Debt financing

Embassy REIT raises Rs.1,550-Cr through NCDs, term loan facilities

Business Standard  

Bengaluru-headquartered listed real estate investment trust, Embassy Office Parks REIT (Embassy REIT) has raised INR 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 fundraise includes INR 750 crore via Embassy REIT Series XIV NCDs, priced at a 6.97% coupon, and an INR 800 crore term loan from a leading bank at a floating rate of 7.40% 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.