Embassy Office Parks REIT has successfully raised ₹2,000 crores via a 10-year Non-Convertible Debenture (NCD). This long-tenor issuance, the first by an Indian REIT, underscores Embassy REIT’s strong credit fundamentals and ready access to India’s debt capital markets.
The issue was priced at an effective coupon of 7.33% over a 10-year tenor, with a step-up structure of 7.25% for the first five years and 7.45% for the subsequent five years.
The proceeds will be used to refinance certain existing debt, and result in annual interest savings of approximately 70 basis points (bps).
The issuance saw robust demand from a diverse set of over 15 leading institutional investors, including insurance companies, pension funds, and mutual funds, and was oversubscribed by 1.4x. The 10-year structure aligns well with the long-duration investment appetite of the investor base.
Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said, “We are delighted to pioneer the first-ever 10-year NCD issuance in India’s REIT market and raise ₹2,000 crores from leading institutions. This transaction optimally staggers our liability profile and enables us to prudently manage future debt maturities.”
Transaction highlights
- Landmark 10-year issuance: First such NCD raised by a listed REIT in India
- ₹2,000 crores via Embassy REIT Series XV NCDs 2025 at an effective 7.33% coupon for 10 years
- 1.4x oversubscription; participation from 15+ top-tier Insurance, Pension and Mutual Fund investors
- Issuance was anchored by large Life Insurance companies and Pension Funds as the 10-year NCD matches their longer tenor investment requirement
- Step-up coupon structure (7.25% for first 5 years, 7.45% thereafter) with a put option at the 5-year mark
- NCDs rated “AAA/Stable” by CRISIL and “AAA/Stable” by CARE
Talwar Thakore & Associates served as the legal counsel to Embassy REIT.
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