Mike Holland, Chief Executive Officer of Embassy REIT said, “The strength of our balance sheet and the underlying covenants of our 200+ occupiers are key advantages for Embassy REIT. The attractive rate at which we have raised this bond and our execution timelines have, once again, demonstrated market confidence in high-quality borrowers like Embassy REIT. We will use the funds raised to refinance a portion of the in-place Embassy TechVillage debt. Post this bond raise, we continue to maintain conservative leverage ratios and retain our flexibility to finance future growth.”
On January 12, 2021, the Debenture Committee of the Board of Directors of the Manager to Embassy REIT approved an issue of NCDs for a principal aggregate amount of up to Rs 2,600 crores to be utilized towards refinancing existing Embassy TechVillage debt and for general corporate purposes. Earlier today, the Debenture Committee approved the allotment of these NCDs at a 6.40 per cent quarterly coupon.
On December 24, 2020, Embassy REIT announced the successful completion of the Embassy TechVillage acquisition for Rs 9780 crore ($1.3 billion) with a Rs 3680 crore ($501 million) equity raise through an institutional placement. The current debt raise is part of the financing strategy for the above acquisition. The transaction witnessed strong demand from both existing and new investors, with prominent domestic financial institutions participating in the issuance.
Morgan Stanley, J.P. Morgan and Kotak Mahindra Bank served as arrangers and advisors on the private placement and Cyril Amarchand Mangaldas served as the legal counsel on the transaction.
Embassy REIT is India’s first publicly listed Real Estate Investment Trust. Embassy REIT owns and operates a 42.4 million square feet (“msf”) portfolio of eight infrastructure-like office parks and four city‑centre office buildings in India’s best-performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (“NCR”). Embassy REIT’s portfolio comprises 32.3 msf completed operating area and is home to over 200 of the world’s leading companies. The portfolio also comprises strategic amenities, including two operational business hotels, four under‑construction hotels, and a 100MW solar park supplying renewable energy to tenants.