Embassy REIT, the first listed Real Estate Investment Trust (REIT) in India and Asia’s largest office REIT by area, has announced that it has successfully raised ₹2,000 crores through coupon-bearing Non-Convertible Debentures (NCDs). The issue was priced at an interest rate of 7.21 percent and carries a three-year tenor. The raised capital will be used to refinance existing debt, allowing the REIT to save approximately 77 basis points in interest costs.

According to Embassy REIT, this move is part of its ongoing capital management strategy aimed at reducing borrowing costs and improving debt efficiency. The company has a well-diversified and conservative debt book, and this latest refinancing transaction demonstrates its strong credit profile and ability to attract institutional investor interest.

Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, commented on the development:

We are pleased to announce this ₹2,000 crore fundraise at an attractive rate of approximately 7.21 percent. This transaction showcases Embassy REIT’s fortress balance sheet and reinforces our standing as the leading credit in India’s commercial real estate sector. We maintain a well-diversified and conservative debt book, and this refinancing positions us well to capitalize on future growth opportunities.

Transaction Highlights

• ₹2,000 crores raised through Series XIII NCDs priced at 7.21 percent effective interest rate

• 11 institutional investors participated, showcasing strong demand and market confidence

• Series IX NCDs worth ₹500 crores, carrying a higher coupon of 8.03 percent, will be repaid early on June 4, 2025, well before their original maturity date of September 4, 2025

• Annual interest savings of approximately 77 basis points

• The NCDs have been rated AAA/Stable by CRISIL

The transaction also demonstrates the favorable interest rate environment currently available to issuers with strong credit ratings. Embassy REIT’s decision to exercise the call option on its earlier debt shows its intent to take advantage of interest rate differentials and lower its overall cost of capital.

Strategic Significance

This refinancing follows Embassy REIT’s broader plan to manage its liabilities prudently, reduce funding costs, and maintain liquidity to support future expansion. It also reflects the market’s confidence in Embassy REIT as a credible and stable investment opportunity, reinforced by its AAA rating from CRISIL.

The legal advisory for the transaction was handled by Talwar Thakore & Associates, ensuring regulatory compliance and structuring efficacy.

About Embassy REIT

Embassy REIT is India’s first publicly listed Real Estate Investment Trust and the largest office REIT in Asia by area. The REIT owns and operates a 51.1 million square feet portfolio consisting of 14 office parks located in India’s top-performing office markets including Bengaluru, Mumbai, Pune, NCR, and Chennai.

Of the total portfolio, 40.3 million square feet is completed operating area, housing over 272 leading global and domestic occupiers. Embassy REIT also owns and manages strategic amenities, such as:

• Four operational business hotels

• Two under-construction hotels

• A 100 MW solar park that supplies renewable energy to its tenants

Embassy REIT is known for its commitment to sustainability and ESG (Environmental, Social, and Governance) principles. It has received multiple accolades from global institutions, including:

• 5-star ratings from the British Safety Council and GRESB

• Inclusion in the 2023 Dow Jones Sustainability Indices, making it the first REIT in India to be recognized for sustainability by a major global benchmark

Forward-Looking Information and Disclaimer

This press release contains forward-looking statements, including assumptions, estimates, and guidance that may be subject to uncertainties and risks. Embassy REIT advises readers not to rely unduly on these forward-looking statements, as actual results may differ significantly due to a variety of market and business factors. The REIT is not obligated to update forward-looking information in the future.

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