Embassy REIT raises Rs 1,000 crore via 5-year paper to fund operations

Embassy Office Parks REIT has raised Rs 1,000 crore through five-year bonds to fund its operations, market sources said. The coupon rate on these bonds is 7.35%.

A Real Estate Investment Trust (REIT) is an entity established for the primary purpose of investing funds in the operation or ownership of real estate in order to generate more income for investors.

These bonds issued by Embassy REIT are rated “AAA”, reflecting the trust’s comfortable loan-to-value (LTV) ratio, which is supported by a cap on additional borrowings and is driven by low leverage and strong debt protection.

Embassy REIT is registered as an irrevocable trust under the Indian Trust Act 1882 and as a REIT with the SEBI Real Estate Investment Trust Regulations 2014. The REIT is sponsored by BRE Mauritius Investments (part of the Blackstone Group) and Embassy Property Development (part of the Embassy Group).

Meanwhile, Torrent Power raised Rs 600 crore through medium term bonds with maturities ranging from two to five years. The bonds bear a coupon of 6.2% over two years, 6.70% over three years, 7.10% over four years and 7.45% over five years. In February, CRISIL upgraded Torrent Power’s debenture ratings from ‘AA’ to ‘AA+’, reflecting the company’s continued strong profitability.

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