[GAGA REALTY] [JOINT VENTURE] [GAGA HOMES]
Embassy Office Parks ‘Embassy REIT’, India’s first listed REIT and the largest office REIT in Asia by area, has raised Rs 2,000 crore debt.The coupon-bearing debt was raised at an interest rate of 7.95%. Embassy REIT will utilize the proceeds from this debt to repay its non-convertible debentures (“NCDs”) of Rs 2,000 crore maturing in October 2024. “We have seen strong participation from mutual funds and banks. The attractive pricing on the term loans and the 3x oversubscription on the listed NCD issuances cements our reputation as the industry’s leading credit. This refinancing continues to allow us to optimally control our balance sheet and positions us to take advantage of future rate cuts to raise capital,” said Aravind Maiya, Chief Executive Officer of Embassy REIT.The recent round of fund raise witnessed demand from Mutual Funds, Life and General Insurers resulting in NCD subscription of 3x. Aditya Birla Sunlife Mutual Fund, ICICI Prudential Mutual Fund and Axis Mutual Fund were the anchors to the issue of Rs. 900 crore NCD, according to documents available on BSE. The raised capital includes issuance of Rs 900 crore against Embassy 247 in Mumbai, Embassy REIT Series XI NCDs 2024 with effective interest rate of 7.87% and Rs. 1,100 crore of term loans from leading PSU & MNC Banks at 8.0% floating coupon against Embassy Manyata Business Park.Additionally, the oversubscription led to a savings of 10 basis points on the offered rate and all proceeds to be used to refinance existing Series V NCD maturing in October 2024.In 2021, Embassy REIT raised Rs 4,600 crore debt against security of its assets at Embassy Manyata Business Parks to repay its existing debt. The 14.8 mn square feet Embassy Manyata Business Park, is one of the largest office parks in Bangalore that hosts tenants such as IBM, Cognizant, ANSR, and NOKIA. The raised capital also included issuance of Rs 1,100 crores of 5-year NCDs at 7.0% and 2,000 crore of 3-year NCDs at 6.3% and Rs 1,500 crore of term loan facility at SPV-level from leading banks. Embassy REIT owns and operates a 51 million square feet portfolio of 14 office parks in India’s best-performing office markets of Bengaluru, Mumbai, Pune, the National Capital Region (‘NCR’) and Chennai. Embassy REIT’s portfolio comprises 37.7 mn square feet of completed operating area and is home to 258 of the world’s leading companies. 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.
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