Embassy REIT raises `1k-cr debt from Bajaj Housing Fin

New Delhi: Embassy Office Parks REIT has raised a term loan of Rs 1,000 crore from Bajaj Housing Finance Ltd to mainly repay existing debt.

In a regulatory filing, Embassy REIT said it will use the proceeds of this debt raise primarily to repay existing construction debt and for general corporate purposes. With this refinance, Embassy REIT achieves interest savings through a 60 basis points (bps) positive refinancing spread, and the long tenor loan helps extend its debt maturity profile. Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said, "Amidst a rising interest rate environment, we are pleased to announce this debt raise of Rs 1,000 crore from a marquee NBFC at industry-leading terms."

With this refinance, he said, the entire debt book is at fixed rates for an average of 18 months, demonstrating active capital management to the benefit of unitholders. "Embassy REIT continues to be well-positioned to finance its growth, given its access to an expanding capital pool that includes banks, mutual funds, insurers, FPIs and now NBFCs," he said.

Embassy REIT is India's first publicly listed Real Estate Investment Trust. It owns and operates a 43.6 million square feet portfolio of eight infrastructure-like office parks and four city-centre office buildings in Bengaluru, Mumbai, Pune, and the National Capital Region (NCR). Its portfolio comprises 34.3 million square feet completed operating area.