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Embassy Office Parks REIT (Embassy REIT) has raised INR 1,000 crore through five-year non-convertible debentures (NCDs) at a 7.73% interest rate. The proceeds will be used to refinance existing debt, saving approximately 70 basis points in interest. The offering attracted strong investor participation, including 12 investors, with 55% demand from existing stakeholders and contributions from mutual funds, pensions, and insurance sectors. Rated 'AAA/Stable' by CRISIL and CARE, the NCDs reflect Embassy REIT's financial stability. Talwar Thakore & Associates acted as legal counsel for the transaction, which enhances Embassy REIT's financial flexibility and reinforces its reputation in the investment market.
Embassy Office Parks REIT (Embassy REIT) recently announced that it successfully raised INR 1,000 crore through the issuance of non-convertible debentures (NCDs). These debentures, referred to as the Embassy REIT Series XII NCDs 2024, are five-year coupon-bearing instruments offering an interest rate of 7.73%. Advertisement
The funds generated through this issuance are intended to be used by the company to repay certain existing debts. This refinancing initiative is expected to result in interest savings of approximately 70 basis points compared to the current rates, thereby optimising the company's debt profile.
Ritwik Bhattacharjee, who is currently serving as the interim Chief Executive Officer of Embassy REIT, noted that the offering received substantial interest from a diverse group of investors. According to Bhattacharjee, the participation included both existing and new investors, with significant contributions coming from first-time participants across sectors such as mutual funds, pension funds, and insurance companies.
In total, about 12 investors were involved in this fundraising exercise, with nearly 55% of the demand coming from the company's existing investors. This strong response reflects the confidence and trust investors have in Embassy REIT's financial stability and growth prospects.
Additionally, the NCDs issued have been assigned a 'AAA/Stable' rating by both CRISIL and CARE, underlining the high credit quality and stable outlook of the company. These ratings are a testament to the sound financial health and risk management practices of Embassy REIT.
The legal aspects of this transaction were handled by Talwar Thakore & Associates, who acted as the legal counsel to Embassy REIT. Their expertise ensured that all regulatory and legal requirements associated with the issuance were meticulously addressed.
This strategic move not only helps Embassy REIT reduce its cost of borrowing but also strengthens its position in the financial market. The favorable investor response and high credit ratings further reinforce the company's reputation as a reliable and stable investment option. Through this initiative, Embassy REIT demonstrates its commitment to maintaining robust financial practices and delivering value to its stakeholders.
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