Embassy REIT to Save 77 bps in Interest with Strategic ₹2,000 Cr Refinancing

Embassy Office Parks REIT has reportedly raised ₹2,000 crore through the issuance of Non-Convertible Debentures (NCDs), with a fixed interest rate of 7.21% for a tenure of three years. The move is expected to yield a significant saving of nearly 77 basis points in interest cost, compared to its current debt servicing rate.

High Investor Confidence Reflected in AAA Rating

According to market sources, the NCDs have received a “AAA/Stable” rating from CRISIL and attracted strong institutional interest, with 11 different investors participating in the offering. This refinancing initiative aligns with Embassy REIT’s broader capital management strategy aimed at strengthening its financial foundation and reducing overall borrowing costs.

Early Redemption of High-Cost Debt Also on the Agenda

In addition to this, Embassy REIT is said to be planning the early redemption of its Series IX NCDs amounting to ₹500 crore, which carry a coupon rate of 8.03%. The call option is scheduled to be exercised on June 4, 2025—well before the original maturity date of September 4, 2025—thereby allowing the REIT to exit a higher-cost borrowing arrangement ahead of time.

Strategic Refinancing to Support Commercial Real Estate Expansion

The REIT reportedly owns and operates a portfolio spread across 51.1 million square feet in major cities such as Bengaluru, Mumbai, Pune, the National Capital Region (NCR), and Chennai. With this refinancing effort, Embassy REIT is expected to be better positioned to pursue new growth opportunities in India’s thriving commercial real estate segment.

Disclaimer: This news article is based on publicly available information and does not constitute financial advice. Readers are advised to conduct their own due diligence or consult a financial advisor before making any investment decisions.