Bengaluru-based Embassy Office Parks REIT raises ₹2,000 crore through coupon-bearing debt with a three-year tenure at an interest rate of 7.21%. The company will use the proceeds to refinance existing debt, which should reduce interest costs by approximately 77 basis points.
“We are pleased to announce this fundraiser. 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,” said Ritwik Bhattacharjee, chief executive officer, Embassy REIT.
Embassy REIT priced the Series XIII NCDs (2025) at an effective interest rate, responding to strong demand from institutional investors, with 11 entities participating in the issuance.
Bhattacharjee stated that Embassy REIT will exercise the call option on its ₹500 crore Series IX NCDs, which carry a coupon rate of 8.03%. Embassy REIT plans to make the early repayment on June 4, 2025, three months before the original maturity date of September 4, 2025.
Looking ahead to FY26, Bhattacharjee acknowledged the prevailing socio-economic challenges; however, he expressed confidence in sustained demand, particularly driven by Global Capability Centers (GCCs). Furthermore, he highlighted Embassy REIT’s commitment to execution, cost optimization, and successfully achieving its FY26 targets.
Embassy REIT has projected distributions between ₹24.50 and ₹26 per unit, representing a 10% year-on-year growth at the midpoint. It also anticipates occupancy levels of 93–94% by value and expects net operating income (NOI) to range between ₹35.9 billion and ₹38.1 billion, indicating a 13% increase.
As India’s first publicly listed real estate investment trust and the largest office REIT in Asia by area, Embassy REIT owns and operates a 51.1 million square foot portfolio comprising 14 office parks. These properties are strategically located across Bengaluru, Mumbai, Pune, NCR, and Chennai, further strengthening its presence in key commercial hubs.
Embassy Office Parks REIT continues to strengthen its financial position through strategic debt refinancing and proactive capital management. Moreover, with robust institutional interest, improving occupancy levels, and projected growth in distributions and net operating income, the REIT remains well-positioned to navigate market challenges and meet its FY26 goals. Additionally, its expanding footprint across key Indian cities reinforces its leadership in the commercial office space sector.
