Embassy REIT Raises Rs 2,000 Crore To Repay NCDs

Embassy Office Parks REIT raised Rs 2,000 crore debt to repay its non-convertible debentures maturing in October. The company raised the said amount with a coupon-bearing debt at an interest rate of 7.95%, according to an exchange filing on Tuesday.

"We are pleased to announce this fundraising of Rs 2,000 crore, which has seen strong participation from mutual funds and banks," said Aravind Maiya, chief executive officer of Embassy REIT.

This refinancing continues to allow the company to optimally control its balance sheet and positions it to take advantage of future rate cuts to raise capital, she said.

It issued NCDs worth Rs 900 crore with an effective interest rate of 7.87% and will receive a sum worth Rs 1,100 crore of term loans from leading public sector undertakings and multi-national company banks at 8.0% floating coupon, it said.

It owns and operates a 51 million square feet portfolio of 14 office parks in Bengaluru, Mumbai, Pune, the National Capital Region and Chennai.

The portfolio also comprises strategic amenities, including four operational business hotels, two under-construction hotels, and a 100 MW solar park supplying renewable energy to tenants.

Embassy Office Parks' stock fell as much as 1.23% during the day to Rs 390 apiece on the NSE. It was trading 0.18% lower at Rs 394.1 apiece, compared to a 0.76% advance in the benchmark Nifty 50 as of 2:43 a.m.

The stock has risen 29% during the last 12 months and has advanced by 21% year-to-date. The relative strength index was at 57.

All 15 analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 3.4%.