Embassy REIT raises Rs 300 cr through debentures to refinance debt

Embassy Office Parks REIT on Tuesday said it has raised Rs 300 crore through issue of non-convertible debentures on a private placement basis to refinance existing debt.

In a regulatory filing, the company said the debenture committee of the board of directors of Embassy Office Parks Management Services Pvt Ltd, Manager of Embassy REIT, has approved the allotment of Non-Convertible Debentures (NCDs) aggregating to Rs 300 crore on a private placement basis.

The NCDs are proposed to be listed on the Wholesale Debt Market (WDM) segment of the BSE. The tenure of the NCDs is 60 months from the deemed date of allotment, with coupon rate at 6.80 per annum.

Embassy REIT said the proceeds will be primarily used to refinance existing construction finance debt.

Embassy REIT is India's first publicly listed Real Estate Investment Trust (REIT), sponsored by global investment firm Blackstone and realty firm Embassy group.

It owns and operates more than 40 million square feet portfolio of eight infrastructure-like office parks and four city-centre office buildings in Bengaluru, Mumbai, Pune, and the national capital region.

Embassy REIT has posted a 36 per cent rise in net operating income to Rs 621.3 crore in the quarter ended June 30. It also declared distribution, including dividend, of Rs 534.61 crore to unitholders for the June quarter.