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Embassy REIT raises ₹2,000 crore through non-convertible debenture

Bengaluru-based Embassy Office Parks Real Estate Investment Trust (REIT), India's first listed REIT and the largest office REIT in Asia by area, has raised Rs 2,000 crore via a 10-year non-convertible debenture (NCD). The issue was priced at a coupon rate of 7.33 per cent with a 10-year tenor and a step-up structure of 7.25 per cent for the first five years and 7.45 per cent for the subsequent five years. This long-tenor issuance is the first by an Indian REIT, according to the REIT. The proceeds will be used to refinance certain existing debt, resulting in annual interest savings of approximately 70 basis points (bps). The REIT's net debt as of March 31, 2025, stood at Rs 19,655 crore, while net debt to earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at 5.36x. Ritwik Bhattacharjee, chief executive officer of Embassy REIT, said, 'This transaction optimally staggers our liability profile and enables us to prudently manage future debt maturities.' Earlier, in the financial year 2025 (FY25), the REIT's net operating income grew by 10 per cent year-on-year, to Rs 3,283 crore. The REIT's portfolio occupancy by value stood at 91 per cent across its key markets—Bengaluru, Mumbai, and Chennai—during FY25. Occupancy by value refers to the occupancy of the commercial offices weighted by the gross asset value of completed commercial offices. In FY25, the REIT leased 6.6 million square feet (msf), delivered 2.5 msf of new development, and acquired 5 msf of assets. Sixty-one per cent of the REIT's leasing was driven by the global capability centres (GCCs).