Embassy REIT Successfully Raises Debt of ₹1,000 crores From Bajaj Housing Finance

Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) ("Embassy REIT"), India's first listed REIT and the largest office REIT in Asia by area, announced today that it has successfully raised a term loan of ₹1,000 crores from Bajaj Housing Finance Limited. Embassy REIT 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.

Atul Jain, Managing Director of Bajaj Housing Finance Limited, said, "We are delighted to partner with Embassy REIT, and we hope to continue with this mutually beneficial partnership and look to strengthen the relationship further."

Vikaash Khdloya, Chief Executive Officer of Embassy REIT, said, "Amidst a rising interest rate environment, we're pleased to announce this debt raise of ₹1,000 crores from a marquee NBFC at industry-leading terms. With this refinance, our entire debt book is at fixed rates for an average of 18 months, demonstrating our active capital management to the benefit of our 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."

Transaction Highlights

- Loan tenor of 12 years enables Embassy REIT to extend the maturity of its debt book

- Proceeds to be used mainly for early refinance of construction debt, resulting in a ~60bps positive refinance spread

- Post this debt raise, 100% of the debt book will be at fixed rates with an average maturity of 18 months. In effect, 65%

of the debt book will have fixed rates for 2 years on an average, and the balance 35% for 7 months on an average Talwar Thakore and Associates served as the legal counsel on the transaction.

On January 25, 2023, the Board of Directors of Embassy Office Parks Management Services Private Limited ("Manager"), the Manager to the Embassy Office Parks REIT ("Embassy REIT"), had approved availaing a term loan of ₹1,000 crores for refinancing of debt availed by SPVs of the REIT and general corporate purposes

Shares of Embassy Office Parks REIT was last trading in BSE at Rs. 309.74 as compared to the previous close of Rs. 308.75. The total number of shares traded during the day was 14946 in over 361 trades.

The stock hit an intraday high of Rs. 314.95 and intraday low of 308.02. The net turnover during the day was Rs. 4626576.00.

Source : Equity Bulls

Keywords

EmbassyOfficeParksREIT FundRaising TermLoan BajajHousingFinance