Embassy Reit raises Rs 2,000 crore debt to refinance existing loans

Embassy Office Parks Reit has raised Rs 2,000 crore debt to refinance its existing borrowings and save interest cost.

In a regulatory filing on Tuesday, Embassy Reit informed that the company has raised Rs 2,000 crore of coupon-bearing debt at an interest rate of 7.21 per cent for a 3-year tenure.

The proceeds will be used to refinance certain existing debt and will save around 77 basis points (bps) in interest costs compared to the current rate, the company said.

Embassy Reit said it witnessed a robust demand from institutional investors with 11 different investors participating in the issue of NCDs (Non-Convertible Debentures).

Ritwik Bhattacharjee, Chief Executive Officer of Embassy Reit, said, " This transaction showcases Embassy Reit's fortress balance sheet and reinforces our standing as the leading credit in India's commercial real estate sector. We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalise on future growth opportunities."  Embassy Reit owns and operates a 51.1 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region (NCR) and Chennai.

Embassy Reit's portfolio comprises 40.3 million square feet completed operating area and is home to 272 of the world's leading companies.

The portfolio also comprises four operational business hotels, two under-construction hotels, and a 100 MW solar park supplying renewable energy to tenants.