Embassy Office Parks REIT on Tuesday mentioned it has raised Rs 300 crore by issuing non-convertible debentures (NCDs) on a private placement basis. The proceeds will mainly be used to refinance current building finance debt.
The Embassy REIT Series IV NCDs 2021 are proposed to be listed on the wholesale debt industry of the BSE. The tenure of the NCDs is 5 years with a coupon price of 6.80% per annum.
On September 2, the debenture committee of Embassy REIT’s board of directors authorized an challenge of NCDs for a principal aggregate quantity of up to Rs 300 crore. On Tuesday, the committee authorized the allotment of these NCDs. Ratings agency Crisil has assigned ‘AAA/Stable’ rating to these NCDs.
“Following the recent Irdai approval permitting insurance companies to invest in REIT debt, we are delighted to announce the first-ever bond raise by an Indian REIT, with robust participation from the domestic insurance sector. This marks an important milestone in Embassy REIT’s ongoing efforts to diversify our debt investor base and also continues the trend of reduction in our cost of debt,” Embassy REIT CFO Aravind Maiya mentioned.
This profitable placement reiterates investor self-assurance in the lengthy-term development story of Embassy REIT and is the initially of a quantity of refinance packages planned for this year, he mentioned.
Embassy REIT’s board has authorized fundraising of up to Rs 4,600 crore by means of rupee-denominated, listed, rated, secured/ unsecured, redeemable, transferrable non-convertible debentures in one or more tranches. During Q1 FY22, it raised Rs 1,200 crore debt at 7.4% interest price and refinanced Rs 520 crore, top to 80 bps saving. Morgan Stanley and HSBC served as arrangers on the private placement and Talwar Thakore and Associates served as the legal counsel on the transaction.
The enterprise owns and operates 42.4 million sq ft of eight infrastructure-like workplace parks and 4 city‐centre workplace buildings in Bangalore, Mumbai, Pune, and Delhi NCR.