Stock Report

Embassy REIT successfully Raises Non-Convertible Debentures of ₹1,050 crores at 7.77% Coupon

Posted On : 2023-06-05 18:25:55( TIMEZONE : IST )

Embassy REIT successfully Raises Non-Convertible Debentures of ₹1,050 crores at 7.77% Coupon

Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) ("Embassy REIT"), India's first listed REIT and the largest office REIT in Asia by area, announced today that it has successfully raised ₹1,050 crores of coupon-bearing Non-Convertible Debentures ("NCDs"). Embassy REIT will utilize the proceeds from this debt raise to refinance bank loans, which are due for an interest reset in the coming months. Through this refinance at 7.77% coupon, Embassy REIT will be able to secure c.138 basis points ("bps") interest savings, compared to the expected interest rate when repriced. The NCDs will be listed on the wholesale debt market of BSE Limited.

Ritwik Bhattacharjee, Chief Investment Officer at Embassy REIT, said, "We are pleased to announce the closing of this fundraise of ₹1,050 crores, which has seen strong participation from institutional investors. Our AAA-rated balance sheet, proactive debt management and industry-leading creditworthiness continues to attract capital from Mutual Funds, Insurers, and Corporates. This NCD issuance, priced at 7.77%, enables us to partly refinance floating rate loans prudently, and we will continue to monitor our floating rate debt book to minimize the impact of potential interest rate increases to unitholders."

Earlier today, the Debenture Committee of the Board of Directors of the Manager to Embassy REIT approved the allotment of these NCDs at a 7.77% quarterly coupon. The rating agency CRISIL has assigned "AAA/Stable" rating to these NCDs.

Transaction Highlights

- Issuance of ₹1,050 crores of Embassy REIT Series VII NCDs 2023 at a 7.77% quarterly coupon with a 2-year tenure

- Proceeds to be primarily used to refinance bank loans

- Annual interest savings of c.138 bps secured through this refinance

Axis Bank Limited, Barclays Bank PLC and ICICI Bank Limited served as arrangers on the private placement and Talwar Thakore & Associates served as the legal counsel to Embassy REIT.

Shares of Embassy Office Parks REIT was last trading in BSE at Rs. 302.74 as compared to the previous close of Rs. 302.10. The total number of shares traded during the day was 42457 in over 1231 trades.

The stock hit an intraday high of Rs. 307.70 and intraday low of 301.00. The net turnover during the day was Rs. 12874831.00.

Source : Equity Bulls


EmbassyOfficeParksREIT NCDs FundRaising