Embassy REIT Secures ₹1,550 Crore via NCDs, Loans for Debt Refinancing

Embassy Office Parks REIT has raised ₹1,550 crore through a combination of Non-Convertible Debentures (NCDs) and term loans. The funds will be used to refinance existing debt, aiming to achieve savings in interest costs.

In a regulatory filing on June 30, the company stated that it raised ₹750 crore through NCDs with a coupon of 6.97%, and secured ₹800 crore as a term loan from a leading bank at a floating interest rate of 7.40% over 15 years. According to Embassy REIT, the refinancing will reduce its annual interest costs by approximately 113 basis points.

Ritwik Bhattacharjee, CEO of Embassy REIT, said the refinancing aligns with the company’s strategy of managing its balance sheet efficiently and will help support future growth plans.

Embassy REIT operates a portfolio of 14 office parks spread across Bengaluru, Mumbai, Pune, Delhi-NCR, and Chennai. The company owns and manages 51.1 million square feet of space, of which 40.3 million square feet is completed and operational.

The company said the refinancing will help improve its debt profile and reduce financing costs, while allowing it to deploy resources towards development activities and other planned initiatives.

Embassy REIT’s move to refinance comes as the company continues to focus on expanding its portfolio and strengthening its position in the office market segment.

Industry analysts note that many real estate investment trusts in India have been working to refinance or restructure existing loans to manage interest costs and extend debt tenors. Embassy REIT’s refinancing effort is expected to help the company maintain financial flexibility and invest in future projects.

Earlier this year, Embassy REIT had also indicated plans to explore further debt market instruments to optimise its capital structure and improve cost efficiency.

With demand for quality office spaces stabilising across major cities, Embassy REIT continues to focus on maintaining occupancy levels and working with existing tenants to meet their space needs. The company’s portfolio includes both completed assets and ongoing development projects aimed at expanding its leasing capacity in key business districts.

Embassy REIT was the first listed real estate investment trust in India. Since its listing, the company has raised funds through multiple debt and equity instruments to support acquisitions, refinance obligations, and develop new projects.

Company officials said they expect the refinancing will also provide room for managing other operational and capital expenditure requirements in the medium term.

According to market watchers, REITs like Embassy remain active in India’s commercial office sector as they seek to maintain stable cash flows, support dividend distributions, and respond to evolving demand in the office leasing market.

Embassy REIT stated that it will continue to evaluate opportunities to strengthen its balance sheet while ensuring stable returns to investors. The company did not disclose the name of the bank providing the ₹800 crore term loan.

The refinancing announcement follows similar moves by other firms in the sector looking to reduce financing costs and extend debt maturity profiles.