Embassy REIT raises Rs 2,000 cr via India’s first 10-year NCD, marking a historic milestone for the REIT market

In a landmark move for India’s real estate investment trust (REIT) market, Embassy Office Parks REIT—the country’s first listed REIT and Asia’s largest office REIT by area—has successfully raised Rs 2,000 crore through a 10-year Non-Convertible Debenture (NCD) issuance.

This marks the first time an Indian REIT has raised funds via a debt instrument of such long tenor, signalling a significant milestone in the evolution of the Indian REIT ecosystem.

A vote of confidence from institutional investors

The issuance saw strong demand, being oversubscribed 1.4 times, and attracted participation from over 15 top-tier institutional investors, including insurance companies, pension funds, and mutual funds.

The robust interest highlights not only Embassy REIT’s strong credit profile but also the growing appetite for long-term, stable investments in India's REIT space.

Attractive coupon with step-up structure

The Series XV NCDs, rated “AAA/Stable” by both CRISIL and CARE, were priced at an effective coupon of 7.33% over 10 years. The structure includes a step-up interest rate—7.25% for the first five years and 7.45% for the next five—offering investors a balanced risk-return profile. A put option at the five-year mark further enhances flexibility for those seeking optionality.

Strategic debt management

Proceeds from the NCD issuance will be used to refinance existing debt, resulting in annual interest cost savings of approximately 70 basis points (bps). This move also helps Embassy REIT stagger its liability profile—a prudent step toward managing future maturities and improving debt sustainability.

Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, said: “We are delighted to pioneer the first-ever 10-year NCD issuance in India’s REIT market and raise ₹2,000 crore from leading institutions. This transaction optimally staggers our liability profile and enables us to prudently manage future debt maturities.”

Setting the benchmark

This milestone issuance sets a new benchmark for REITs in India, aligning capital-raising strategies with the long-term investment goals of institutional players.

Anchored primarily by large life insurers and pension funds, the issuance reflects strong confidence in Embassy REIT’s creditworthiness and the long-term potential of India’s commercial real estate sector.

Talwar Thakore & Associates acted as legal counsel for the transaction.

With this move, Embassy REIT has not only fortified its balance sheet but also paved the way for future innovations in India’s REIT and debt capital markets.

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