Embassy Reit raises Rs 1,050 cr through NCDs

Mumbai, Jun 5 (PTI) Embassy Office Parks Reit on Monday said it has raised Rs 1,050 crore in debt by issuing non-convertible debentures (NCDs) to finance existing bank loans.

The NCDs were issued at a quarterly coupon of 7.77 per cent, the country’s first listed Reit said.

The proceeds will be used to refinance bank loans, which are due for an interest reset shortly, the company said in a statement.

The move will help Embassy Office Parks save 138 basis points on interest cost, said its chief investment officer Ritwik Bhattacharjee.

He said the two-year issue saw participation from institutional investors like mutual funds, insurers and corporates.

Embassy Reit owns and operates a 45 million square feet portfolio of nine infrastructure-like office parks and four city-centre office buildings in Bangalore, Mumbai, Pune, and the National Capital Region.

Its portfolio comprises 34.3 million square feet of completed space, which is home to around 230 companies. It also comprises four operational business hotels, two under-construction hotels and a 100 MW solar park, supplying renewable energy to tenants.