Aravind Maiya, chief financial officer of Embassy REIT, said, “This marks an important milestone in Embassy REIT’s ongoing efforts to diversify our debt investor base and also continues the trend of reduction in our cost of debt.”
On September 2, 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 300 crore and earlier today, the debenture committee approved the allotment of these NCDs at a 6.80% quarterly coupon.
The rating agency CRISIL has assigned ‘AAA/Stable’ rating to these NCDs.
Proceeds to be primarily used to refinance existing construction finance debt, resulting in a 110 bps positive refinance spread, the company said.
Morgan Stanley and HSBC served as arrangers on the private placement and Talwar Thakore and Associates served as the legal counsel on the transaction.