TT&A advises Embassy REIT on its ₹1,000 crore NCD issue

TT&A Advocates and Solicitors advised Embassy REIT on its issuance of secured, listed, and rated Non-Convertible Debentures (NCDs) of ₹1,000 crore.

TT&A 's transaction team consisted of Nidhi Rani (Partner), Kartik Jigyasi (Senior Associate), Pallav Rathi (Associate) and Kashish Agarwal (Associate).

Embassy REIT (Embassy Office Parks REIT) is India’s first publicly listed Real Estate Investment Trust (REIT). Established in 2019, Embassy REIT owns and operates a large portfolio of commercial office spaces, spanning across major cities like Bengaluru, Mumbai, Pune, and Delhi NCR.

Its portfolio comprises 34.3 million square feet of completed space, which is home to around 230 companies. It also comprises four operational business hotels, two under-construction hotels and a 100 MW solar park, supplying renewable energy to tenants.

In a regulatory filing last week, Embassy REIT announced that it has successfully raised ₹1,000 crore through five-year coupon-bearing debt at an interest rate of 7.73%.

The proceeds from this debt issuance will be used to refinance a portion of its existing debt. This refinancing initiative is expected to yield interest savings of approximately 70 basis points compared to the current rate, enhancing Embassy REIT's financial efficiency.

In 2023, the trust raised ₹1,050 crore in debt by issuing NCDs to finance existing bank loans. The NCDs were issued at a quarterly coupon of 7.77%.

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