Embassy REIT raises debt of Rs 1,000 crore from Bajaj Housing Finance

NEW DELHI: Embassy Office Parks REIT (Embassy REIT) has raised a term loan of Rs 1,000
crore from Bajaj Housing Finance, a subsidiary of Bajaj Finance, the company said in a BSE
filing.
The company will use the proceeds of this debt raise primarily to repay existing construction
debt and for general corporate purposes.
With this refinance, Embassy REIT said it achieved interest savings through a ~60 basis points
positive refinancing spread, and the long tenor loan helps extend its debt maturity profile.
“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, chief executive officer of Embassy REIT.
Post this debt raise, 100 per cent of the debt book will be at fixed rates with an average maturity
of 18 months. In effect, 65 per cent of the debt book will have fixed rates for two years on an
average, and the balance 35 per cent for seven months on an average, the company said.
Talwar Thakore and Associates served as the legal counsel on the transaction.
On January 25, 2023, the board of directors of Embassy Office Parks Management Services,
the manager to the Embassy REIT, had approved availing a term loan of Rs 1,000 crore for
refinancing of debt availed by SPVs of the REIT and general corporate purposes.