Embassy REIT: ₹1,000 Crore Bank Financing

Office Parks REIT has raised ₹1,000 crore through three-year floating-rate non-convertible debentures, fully subscribed by a leading European multinational bank. The transaction is significant not just for Embassy REIT but for India's growing REIT financing ecosystem, as it represents the first financing by a scheduled commercial bank to an Indian REIT at the trust level under the RBI's new framework. The NCDs have an initial coupon rate of 6.97%, with pricing at a spread of 150 basis points over the agreed three-month MIBOR OIS benchmark. The coupon will reset every three months, making the borrowing cost sensitive to movements in benchmark interest rates. The proceeds will be used to refinance existing debt, rather than fund a new acquisition or expansion. This means the transaction is primarily a balance-sheet and liability-management exercise. The three-year tenor provides Embassy REIT with additional funding visibility while allowing it to refinance existing obligations through a new source of institutional capital.