Embassy Office Parks REIT has raised debt of Rs 2,000 crore to repay non-convertible debentures maturing in October. The company raised the above amount through coupon debt with an interest rate of 7.95%, according to an exchange filing on Tuesday.
“We are pleased to announce this Rs 2,000-crore capital raising which saw strong participation from mutual funds and banks,” said Aravind Maiya, Chief Executive Officer, Embassy REIT.
The refinancing allows the company to continue to optimally manage its balance sheet and positions it to take advantage of future interest rate cuts to raise capital, he said.
The company announced that it will issue NCDs worth Rs 900 crore at an effective interest rate of 7.87% and will receive term loans worth Rs 1,100 crore from major public sector undertakings and multinational corporate banks at a floating coupon of 8.0%.
The company owns and operates a 51 million sq ft portfolio of 14 office parks located in Bangalore, Mumbai, Pune, National Capital Region and Chennai.
The portfolio also includes four business hotels in operation, two hotels under construction, and strategic amenities such as a 100 MW solar park that provides renewable energy to its tenants.
