Embassy REIT Raises Rs 750 crore via NCDs
Embassy Office Parks REIT, India’s first listed REIT, has raised Rs 750 crore through issue of non-convertible debentures (NCDs) at 6.70% quarterly coupon rate. The funds raised will be used to drive growth through on-campus development projects and the recently announced acquisition of Embassy Manyata and Embassy TechZone property maintenance.
“This successful placement once again demonstrates the strength of our balance sheet and the underlying appeal of our business supported by the strong covenants of a largely multinational occupier base,” said Michael Holland, CEO of Embassy REIT.
The NCDs will be listed on the holesale Debt Market of the Bombay Stock Echange. This is the second round of NCDs raised by the Embassy REIT. The rm had raised Rs 750 in September to support its growth plans. “We continue to maintain low leverage and remain very well placed to pursue further accretive growth opportunities to the benet of our unitholders,” Holland added.
This is the second round of NCD/ Morgan Stanley served as sole arranger on the private placement and Cyril Amarchand Mangaldas served as the legal counsel on the transaction. Listed in April 2019, Embassy REIT owns and operates a 33.3 million sq ft portfolio of seven infrastructure-like Office parks and four city‑center office buildings across key property markets of India. Embassy REIT’s portfolio comprises 26.2 million sq ft completed operating area, and has an occupancy of 92.2% as of June end.