Embassy REIT raises Rs 1,000 crore via 5-year paper to fund operations

Embassy Office Parks REIT has raised Rs 1,000 crore through five-year bonds to fund its operations, market sources said. The coupon rate on these bonds is 7.35 per cent.

A Real Estate Investment Trust (REIT) is an entity created with the main purpose to invest funds in the operation or ownership of the real estate to further generate income for investors.

These bonds floated by Embassy REIT carry “AAA” rating, reflecting the trust’s comfortable loan-to-value (LTV) ratio, which is supported by a cap on incremental borrowings and is driven by low debt and strong debt protection metrics.

Embassy REIT is registered as an irrevocable trust under the Indian Trust Act of 1882 and as a REIT with SEBI’s Real Estate Investment Trust Regulations of 2014. The REIT is sponsored by BRE Mauritius Investments (part of the Blackstone group) and Emb­assy Property Development (part of the Embassy group).

Meanwhile, Torrent Power raised Rs 600 crore through medium-term bonds with maturities ranging from two to five years. The bonds carry a coupon of 6.2 per cent for two years, 6.70 per cent for three years, 7.10 per cent for four years, and 7.45 per cent for five years. In February, CRISIL had upgraded ratings for Torrent Power’s debentures from “AA” to “AA+”, reflecting the company’s continued strong profitability.