Embassy REIT raises Rs 1,000 crore in first bank financing at trust level

MUMBAI: Embassy Office Parks REIT has raised Rs 1,000 crore through the issuance of three-year floating-rate non-convertible debentures to a European multinational bank.

This is the first such issue wherein an Indian REIT has accessed funding from a scheduled commercial bank at the trust level under the Reserve Bank of India’s new REIT lending framework.

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The NCDs, issued as Embassy REIT Series XVIII, have been fully subscribed by the European bank. The transaction follows the RBI’s framework announced in June 2026 permitting commercial banks to finance REITs.

The NCDs are priced at a spread of 150 basis points over the agreed three-month MIBOR OIS benchmark, translating into an initial coupon of 6.97%. The coupon will reset every three months in line with movements in the benchmark.

“This Rs 1,000 crore fundraise is a significant milestone for Embassy REIT and for the evolution of India’s REIT market. Continued regulatory support from SEBI and RBI has strengthened access to long-term funding for REITs. This new framework opens an important source of institutional capital that complements traditional capital market funding and further deepens the financing ecosystem,” said Amit Shetty, CEO, Embassy REIT.

The transaction provides REITs with access to an additional source of institutional funding beyond traditional capital market funding. The three-year tenor and floating-rate structure link the cost of borrowing to the three-month MIBOR OIS benchmark.

Embassy REIT owns and operates a portfolio of over 52 million square feet of office space across India’s key gateway markets, including Bengaluru, Mumbai, Pune, the National Capital Region and Chennai.

The portfolio comprises 14 premium office ecosystems, including large, integrated office parks and city-centre office assets, and is home to 285 leading global and domestic corporations.

In addition to office assets, Embassy REIT’s portfolio includes five operational business hotels, two hotels under development and a 100 MW solar park that supplies renewable energy to tenants.

The transaction marks the first financing by a scheduled commercial bank to an Indian REIT at the trust level following the RBI’s new REIT lending framework, providing a new avenue for bank funding for the sector.