Embassy REIT, the first real estate investment trust listed in India, has raised ₹750 crore through issue of non-convertible debentures (NCD) at 6.70% quarterly coupon rate.
The NCDs will be listed on the Wholesale Debt Market of BSE Limited (“BSE”).
This is its second round of NCDs raised by Embassy REIT after raising ₹750 in September to fund its plans of growth.
“…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, Embassy REIT.
Morgan Stanley served as sole arranger on the private placement and Cyril Amarchand Mangaldas served as the legal counsel on the transaction.
The funds raised will be used to drive growth through our on-campus development projects and our recently announced acquisition of Embassy Manyata and Embassy TechZone property maintenance, Holland added. “We continue to maintain low leverage and remain very well placed to pursue further accretive growth opportunities to the benefit of our unit holders.”
In August, the board of Embassy Office Parks Management Services, which is the manager to Embassy REIT, approved the issue of NCDs in one or more tranches. Of this, allotment of the first tranche aggregating ₹750 crore was completed on 9 September.
The Debenture Committee approved the allotment of the second tranche of ₹750 crore carrying a face value of ₹10 lakh with a coupon of 6.70% payable on a quarterly basis.
