Latest news with #EmbassyOfficeParksREIT
Time of India
5 days ago
- Business
- Time of India
Embassy REIT raises Rs 2,000 cr via India's first 10-year NCD, marking a historic milestone for the REIT market
Tired of too many ads? Remove Ads A vote of confidence from institutional investors Tired of too many ads? Remove Ads Attractive coupon with step-up structure Popular in Markets 1. DLF-Trident Realty JV sells all 416 flats in Mumbai project for Rs 2,300cr Strategic debt management Setting the benchmark In a landmark move for India's real estate investment trust REIT ) market, Embassy Office Parks REIT—the country's first listed REIT and Asia's largest office REIT by area—has successfully raised Rs 2,000 crore through a 10-year Non-Convertible Debenture NCD ) marks the first time an Indian REIT has raised funds via a debt instrument of such long tenor, signalling a significant milestone in the evolution of the Indian REIT issuance saw strong demand, being oversubscribed 1.4 times, and attracted participation from over 15 top-tier institutional investors, including insurance companies, pension funds, and mutual robust interest highlights not only Embassy REIT 's strong credit profile but also the growing appetite for long-term, stable investments in India's REIT Series XV NCDs, rated 'AAA/Stable' by both CRISIL and CARE, were priced at an effective coupon of 7.33% over 10 years. The structure includes a step-up interest rate—7.25% for the first five years and 7.45% for the next five—offering investors a balanced risk-return profile. A put option at the five-year mark further enhances flexibility for those seeking from the NCD issuance will be used to refinance existing debt, resulting in annual interest cost savings of approximately 70 basis points (bps). This move also helps Embassy REIT stagger its liability profile—a prudent step toward managing future maturities and improving debt Bhattacharjee, Chief Executive Officer of Embassy REIT, said: 'We are delighted to pioneer the first-ever 10-year NCD issuance in India's REIT market and raise ₹2,000 crore from leading institutions. This transaction optimally staggers our liability profile and enables us to prudently manage future debt maturities.'This milestone issuance sets a new benchmark for REITs in India, aligning capital-raising strategies with the long-term investment goals of institutional primarily by large life insurers and pension funds, the issuance reflects strong confidence in Embassy REIT's creditworthiness and the long-term potential of India's commercial real estate Thakore & Associates acted as legal counsel for the this move, Embassy REIT has not only fortified its balance sheet but also paved the way for future innovations in India's REIT and debt capital markets.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
News18
5 days ago
- Business
- News18
Embassy REIT raises Rs 2,000 cr via debentures to refinance loans
Agency: New Delhi, Jul 25 (PTI) Embassy Office Parks REIT has raised Rs 2,000 crore through issue of non-convertible debentures (NCDs) to refinance its existing loans and save interest cost. In a regulatory filing on Friday, the company informed that the NCDs have been issued for 10-year tenor. The coupon rate is 7.25 per cent for the first five years and 7.45 per cent for the subsequent five years. The company said it would use the amount to 'refinance certain existing debt". More than 15 institutional investors, including insurance companies, pension funds, and mutual funds, participated in the issue. Embassy REIT is India's first publicly listed Real Estate Investment Trust. It has a total portfolio of 51.1 million sq ft area across 14 office parks in Bengaluru, Mumbai, Pune, Delhi-NCR and Chennai. PTI MJH MJH DR DR Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Reuters
21-07-2025
- Business
- Reuters
India's investment trusts to expand debt fundraising as yields drop, analysts say
MUMBAI, July 21 (Reuters) - Debt fundraising by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling interest rates continue to fuel strong investor demand, analysts said. The real estate investment trusts (REIT) and infrastructure investment trusts (InvIT) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database. "Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates. "The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting institutional investors seeking yield-bearing, asset-backed instruments." Corporate bond yields have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates. Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the bond market. Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks. Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm. The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns. Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers. "The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility. With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform. ($1 = 86.1700 Indian rupees)
Economic Times
16-07-2025
- Business
- Economic Times
India's Embassy REIT to tap debt market with Rs 2,000 crore bond sale, sources say
India's Embassy Office Parks REIT is in talks with bankers to raise 20 billion rupees ($232.79 million) via the issuance of five-year corporate bonds, three sources aware of the matter said on Wednesday. ADVERTISEMENT The real estate investment trust will look to close the funding round before the end of this month, the sources said requesting anonymity as the talks are private. The debt sale could attract strong demand from mutual funds as well as some insurance companies, as the notes are rated 'AAA' by Crisil, they said. The firm did not reply to a Reuters email seeking comment. Embassy REIT will tap the bond market for the second time this year after it raised 7.50 billion rupees in June through the sale of 21-month bonds at a coupon of 6.9650%, payable on a quarterly basis. "Since the company is targeting a larger quantum as compared to the June issue, they have gone for a slightly higher tenor to attract demand from insurance companies," one of the sources said. ADVERTISEMENT The coupon on this bond issue has not been decided. The ratings continue to factor in exposure to refinancing risks and susceptibility to volatility in the real estate sector, resulting in fluctuations in rental rates and occupancy, rating agency Crisil said. ADVERTISEMENT Currently, the company has outstanding bonds worth around 85 billion rupees, as per Crisil. ($1 = 85.9125 Indian rupees) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
16-07-2025
- Business
- Time of India
India's Embassy REIT to tap debt market with Rs 2,000 crore bond sale, sources say
India's Embassy Office Parks REIT is in talks with bankers to raise 20 billion rupees ($232.79 million) via the issuance of five-year corporate bonds, three sources aware of the matter said on Wednesdarces say Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's Embassy Office Parks REIT is in talks with bankers to raise 20 billion rupees ($232.79 million) via the issuance of five-year corporate bonds, three sources aware of the matter said on real estate investment trust will look to close the funding round before the end of this month, the sources said requesting anonymity as the talks are debt sale could attract strong demand from mutual funds as well as some insurance companies, as the notes are rated 'AAA' by Crisil, they firm did not reply to a Reuters email seeking REIT will tap the bond market for the second time this year after it raised 7.50 billion rupees in June through the sale of 21-month bonds at a coupon of 6.9650%, payable on a quarterly basis."Since the company is targeting a larger quantum as compared to the June issue, they have gone for a slightly higher tenor to attract demand from insurance companies," one of the sources coupon on this bond issue has not been ratings continue to factor in exposure to refinancing risks and susceptibility to volatility in the real estate sector, resulting in fluctuations in rental rates and occupancy, rating agency Crisil the company has outstanding bonds worth around 85 billion rupees, as per Crisil.($1 = 85.9125 Indian rupees)
