In a significant development for fixed-income investors and the real estate investment trust (REIT) market in India, Embassy Office Parks REIT, managed by Embassy Office Parks Management Services Private Limited, has announced the approval of a new round of debt issuance worth ₹750 crore. The move follows a prior board approval granted on April 23, 2025, for raising debt up to ₹6,500 crore. The current issuance is aimed at refinancing existing borrowings and funding capital expenditure needs of its Special Purpose Vehicles (SPVs).

As per the official communication dated June 24, 2025, released to the National Stock Exchange (NSE) and BSE Limited, the Debenture Committee of the Board of Directors of the Manager has approved the issuance of 75,000 listed, rated, secured, redeemable, transferable, rupee-denominated, non-convertible debentures (NCDs) under Series XIV, each with a face value of ₹1,00,000, aggregating to a total of ₹750 crore. These debentures will be offered on a private placement basis.

Key Details of Series XIV NCD Issuance

The decision to raise funds through Series XIV NCDs is a continuation of Embassy REIT’s broader ₹6,500 crore fundraising strategy, approved earlier by its Board for refinancing existing loans, supporting working capital requirements, and investing in capital infrastructure across its operating and development assets.

Strategic Use of Funds

The proceeds from the Series XIV NCD issue will be directed towards:

• Repayment or prepayment of existing debt, thereby reducing interest burden and enhancing the balance sheet.

• Capital expenditure requirements of various SPVs under Embassy REIT, facilitating asset maintenance, upgrades, and possible acquisitions.

This two-fold objective not only strengthens the REIT’s financial position but also supports its long-term growth and operational sustainability.

Meeting Details

The Debenture Committee meeting, where this issuance was approved, was held on June 24, 2025, and commenced at 10:17 AM IST, concluding by 10:34 AM IST. The meeting was conducted under the authority of Embassy Office Parks Management Services Private Limited, which acts as the Manager to Embassy Office Parks REIT.

Regulatory Compliance and Governance

Embassy REIT has once again demonstrated its commitment to transparent governance and regulatory compliance. The announcement was made in line with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring prompt and clear communication to stakeholders.

The REIT has multiple listed instruments, including equity and various NCDs and Commercial Papers (CPs), with the following relevant codes:

• Scrip Symbol: EMBASSY

• Scrip Codes (NCDs): 973434, 973546, 973910, 975051, 975311, 976042, 976240, 976699, 976700

• Scrip Codes (CPs): 728768, 729286, 729287

This regulatory disclosure adds to Embassy REIT’s history of structured fundraising activity aimed at maintaining a sustainable debt profile and ensuring investor confidence in India’s first listed REIT.

Broader Financial Strategy

The decision to issue ₹750 crore in Series XIV NCDs is part of a well-calibrated financial strategy. Embassy REIT’s previous rounds of fundraising have enabled:

• Optimal debt restructuring

• Strengthening of working capital

• Funding capital-intensive upgrades to commercial real estate assets

• Boosting return metrics through prudent debt management

Through a mix of short-to-mid-term private placement instruments, the REIT maintains financial agility while continuing to generate predictable income streams for unitholders.

About Embassy Office Parks REIT

Embassy REIT is India’s first publicly listed Real Estate Investment Trust, focused on premium commercial real estate assets, predominantly office parks. Its portfolio spans across Bengaluru, Mumbai, Pune, and NCR, making it India’s largest office REIT in terms of leasable area.

With world-class business parks and a roster of blue-chip global clients, Embassy REIT provides investors with the opportunity to participate in long-term income-generating real estate through regulated market instruments.

It is managed by Embassy Office Parks Management Services Private Limited, headquartered in Bengaluru, Karnataka, registered under CIN: U70100KA2014PTC073362.

Investor Implications

This fundraising has the following implications for investors:

• Stable and secure instrument for fixed-income investors looking for rupee-denominated returns

• Ensures continued interest coverage ratio stability, which is a key performance indicator for debt-funded REITs

• Positively impacts the debt maturity profile, making it more balanced and sustainable

By using the proceeds of the Series XIV NCD issue to refinance debt and invest in CAPEX, Embassy REIT improves its operational flexibility, reduces risk, and maintains its credit profile.

Conclusion

The approval and issuance of ₹750 crore Series XIV NCDs by Embassy REIT reflect a proactive approach towards strategic debt management and infrastructure growth. With funds earmarked for debt repayment and capital expenditure across its SPVs, this move enhances the financial health and asset performance of India’s largest commercial REIT.

As Embassy REIT continues to deliver consistent returns, maintain best-in-class governance, and expand its premium office asset base, this latest step cements its reputation as a leader in India’s institutional real estate market.

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