Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced today that it has successfully priced and allotted by way of a private placement, Rs 3 billion or Rs 300 crores of rupee-denominated, listed, rated, secured, redeemable, transferable non-convertible debentures at a 6.80 percent quarterly coupon. The NCDs will be listed on the Wholesale Debt Market of BSE Limited.
Aravind Maiya, Chief Financial Officer of Embassy REIT, commented, “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.”
The proceeds will b e primarily used to refinance existing construction finance debt, resulting in a 110 bps positive refinance spread
On September 2, 2021, the Debenture Committee of the Board of Directors of the Manager to Embassy REIT approved an issue of NCDs for a principal aggregate amount of up to Rs 300 crores and earlier today, the Debenture Committee approved the allotment of these NCDs at a 6.80 percent quarterly coupon. The rating agency CRISIL has assigned “AAA/Stable” rating to these NCDs.
Morgan Stanley and HSBC served as arrangers on the private placement and Talwar Thakore and Associates served as the legal counsel on the transaction.
