Embassy Office Parks REIT (Embassy REIT) has raised a term loan of INR10,000 million from Bajaj Housing Finance Limited.
The loan has a tenure of 12 years, extending the maturity of the REIT’s dent book.
Embassy REIT will use the proceeds of this facility primarily to repay existing construction debt and for general corporate purposes.
With this refinance, Embassy REIT achieves interest savings through an approximately 60 basis points positive refinancing spread, and the long tenor loan helps extend its debt maturity profile, said the REIT.
“With this refinance, our entire debt book is at fixed rates for an average of 18 months, demonstrating our active capital management to the benefit of our unitholders”, said Vikaash Khdloya, CEO of Embassy REIT.
“Embassy REIT continues to be well-positioned to finance its growth, given its access to an expanding capital pool that includes banks, mutual funds, insurers, [foreign portfolio investors]and now [non-banking financial companies].”
Post this debt raise, 100% of Embassy REIT’s debt book will be at fixed rates with an average maturity of 18 months.
In effect, 65% of the debt book will have fixed rates for two years on an average, and the balance 35% for 7 months on an average.
Embassy REIT was last done on the BSE at INR305.10, which presently implies a distribution yield of 6.96% according to data on the India REITs table.