Press Release

Data update as per latest quarterly results. Currently updated as of September 30, 2020 and excludes recently completed Embassy TechVillage Acquisition.

Embassy REIT Successfully Raises ₹4,600 crores Debt at 6.5%, to Achieve c.300 basis points Interest Savings by Refinancing Existing Debt

Bengaluru, India, October 18, 2021

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 ₹4,600 crores coupon-bearing debt at an attractive interest rate of 6.5%. The proceeds from this debt raise will be utilized by Embassy REIT to repay its existing zero-coupon bond outstanding of ₹4,530 crores. Embassy REIT will be able to secure c.300 basis points (“bps”) interest savings annually through this refinance.

Aravind Maiya, Chief Financial Officer of Embassy REIT, commented,

“We are delighted to announce this comprehensive debt raise of ₹4,600 crores which is a key milestone in our financing journey. With this refinancing, our consolidated debt cost reduces to 6.8% from the original 9.4% at the time of listing, thereby significantly reducing our interest cost to the benefit of our Unitholders. Also, we have been able to diversify our debt investor base by tapping into newer avenues of capital such as insurers, thereby underscoring the growing investor confidence in our business.”

Earlier today, the Debenture Committee approved the allotment of ₹3,100 crores Series V rupee-denominated, listed, rated, secured, redeemable, transferable NCDs by way of private placement at 6.5% average fixed coupon. The NCDs will be listed on the Wholesale Debt Market of BSE Limited (“BSE”). Further, Embassy REIT has secured a term loan facility at SPV-level from a bank for ₹1,500 crores at 6.4% floating coupon. Both these proceeds, totaling ₹4,600 crores, will be utilized to redeem the Series I NCDs on November 2, 2021.

Transaction Highlights

  • Issuance of ₹3,100 crores of Embassy REIT Series V NCDs 2021 at 6.5% average fixed coupon payable quarterly
    • ₹1,100 crores of 5-year NCDs at 7.0% and ₹2,000 crores of 3-year NCDs at 6.3%
    • Robust demand from Mutual Funds, Life and General Insurers
    • “CRISIL AAA/Stable” rating assigned by rating agency CRISIL to the NCDs issued
  • Secures ₹1,500 crores of term loan facility at SPV-level from a leading bank at 6.4% floating coupon payable monthly
  • Proceeds to be used for early refinance of zero-coupon bond (Series I NCDs), resulting in a c.300 bps positive refinance spread
  • Average tenure of debt raised is 4 years and compares favorably to the 3-year listed bonds raised earlier
  • Post this refinance, proforma gross debt of Embassy REIT would be ₹11,532 crores at 6.8% interest rate with a maturity of 3.7 years

Morgan Stanley, Kotak Mahindra Bank and HSBC served as arrangers on the private placement and Talwar Thakore and Associates served as the legal counsel on the transaction.

About Embassy REIT

Embassy REIT is India’s first publicly listed Real Estate Investment Trust. Embassy REIT owns and operates a 42.4 million square feet (“msf”) portfolio of eight infrastructure-like office parks and four city‑centre office buildings in India’s best-performing office markets of Bangalore, Mumbai, Pune, and the National Capital Region (“NCR”). Embassy REIT’s portfolio comprises 32.3 msf completed operating area and is home to 190 of the world’s leading companies. The portfolio also comprises strategic amenities, including two operational business hotels, four under‑construction hotels, and a 100MW solar park supplying renewable energy to tenants.


This press release is prepared for general information purposes only. The information contained herein is based on management information and estimates. It is only current as of its date, has not been independently verified and may be subject to change without notice. Embassy Office Parks Management Services Private Limited (“the Manager”) in its capacity as the Manager of Embassy REIT, and Embassy REIT make no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to, the fairness and completeness of the content hereof. Each recipient will be solely responsible for its own investigation, assessment and analysis of the market and the market position of Embassy REIT. Embassy REIT does not provide any guarantee or assurance with respect to any distribution or the trading price of its units.

This press release contains forward-looking statements based on the currently held beliefs, opinions and assumptions of the Manager. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of Embassy REIT or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, including the impact of COVID-19 on us, our occupiers and the Indian and global economies, recipients of this press release are cautioned not to place undue reliance on these forward-looking statements. The Manager disclaims any obligation to update these forward-looking statements to reflect future events or developments or the impact of events which cannot currently be ascertained, such as COVID-19. In addition to statements which are forward looking by reason of context, the words ‘may’, ‘will’, ‘should’, ‘expects’, ‘plans’, ‘intends’, ‘anticipates’, ‘believes’, ‘estimates’, ‘predicts’, ‘potential’ or ‘continue’ and similar expressions identify forward-looking statements. This press release also contains certain financial measures which are not audited, reviewed or measures determined based on GAAP, Ind-AS or any other internationally accepted accounting principles, and the recipient should not consider such items as an alternative to the historical financial results or other indicators of the Embassy REIT's financial condition based on Ind-AS or IFRS. Certain figures in this press release have been subject to rounding off adjustments.

For more information please contact:

Abhishek Agarwal

Head of Investor Relations and Communications


  : +91 80 4722 2222


Sowmya Shenoy

Media Relations


  : +91 96 6369 9991