Embassy REIT raises ₹1,400 cr via 10-year NCD to boost long-term capital

Embassy REIT has raised ₹1,400 crore through a fully subscribed 10-year NCD issue, expanding its institutional investor base as the trust continues to secure long-duration capital

Bengaluru based real estate investment trust Embassy REIT on Thursday said that it has raised Rs 1,400 cr through non-convertible debentures (NCD) issuance in a bid to strengthen its long term capital as institutional investors continue to show a strong appetite for high quality office assets.  

“Priced at a fixed coupon of 7.49 per cent for a 10-year tenor, the issuance was fully subscribed by one of India’s largest life insurance companies in India,” people in the know told Business Standard.

 

While the trust did not name the insurance major, it said that the NCDs were issued as series XVI debentures and carried top-tier credit ratings of AAA/Stable from CRISIL and CARE Ratings.

 

 

Commenting on the transaction, Amit Shetty, chief executive officer (CEO) of Embassy REIT said that the fundraise aligns with the trust’s strategy to extend the maturity profile of its debt while interest rate conditions remain favorable.

 

“This transaction is part of our broader strategy to lengthen the duration of our debt stack and further strengthen our capital structure,” he added.

 

This is Embassy REIT's second long tenor-based fund raise in financial year 2025-26 (FY26) and takes the total capital raised through similar 10-year instruments to Rs 3,400 crore. 

 

The trust has previously raised around Rs 2,000 crore in July 2025, seeing participation from more than fifteen players including insurance, pension and mutual fund investors. 

 

“Successfully completing two 10-year issuances this financial year highlights our continued ability to access long-term capital at attractive rates,” said Shetty.

 

With the latest issuance, Embassy REIT has significantly expanded its institutional investor base. 

 

“The trust now counts more than 23 institutional investors across the insurance and pension fund segments in its NCD book, reflecting strong alignment between the long-duration income profile of office REIT assets and liability-matching requirements of large institutional investors,” Embassy REIT said in a regulatory filing on the bourses.