Embassy REIT to raise up to Rs 300 crore via debentures

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Embassy Office Parks REIT will raise up to Rs 300 crore through issue of non-convertible debentures. The company did not disclose where the funds will be utilised. In a regulatory filing, the company informed that the board of Embassy Office Parks Management Services Pvt Ltd, the manager to Embassy Office Parks REIT, had in November last year approved the raising of debt, including the issue of non-convertible debentures, for an aggregate amount up to Rs 3,641.1 crore in one or more tranches. Out of this, Rs 2,600 crore was raised earlier as REIT NCD Series-III. On Thursday, the debenture committee of the board of directors of the manager, has approved the further issuance of 3,000 listed, rated, secured, redeemable, transferable, rupee denominated non-convertible debentures of face value of Rs 10,00,000 each, aggregating up to Rs 300 crore by Embassy REIT on a private placement basis. In January this year, Embassy REIT had raised Rs 2,600 crore through issue of non-convertible debentures to refinance an existing debt of its IT park 'Embassy TechVillage' in Bengaluru. "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," Mike Holland, chief executive officer of Embassy REIT, had said. Embassy REIT had on December 24, 2020, completed the acquisition of Embassy TechVillage for Rs 9,780 crore. It had raised Rs 3,680 crore as equity through an institutional placement to fund this acquisition.