Embassy Office Parks REIT got Rs 3,000 cr debenture approval through private placement.

By Abhay Harish Shah , Realty Quarter

On Friday, 3rd May 2019, REIT declared that they will raise Rs 3,000 crore through the allocation of debentures on a private placement basis.

Embassy Office Parks is India’s first Real Estate Investment Trust (REIT). Embassy Office Parks, a joint endeavor between worldwide venture firm Blackstone and realty firm Embassy Group, is the main developer of commercial real estate. It propelled the nation’s first real estate investment trust (REIT) to raise Rs 4,750 crore.

In an announcement, the organization said: “It has effectively evaluated and allocated by a method of a private placement Rs 30 billion of rupee-denominated, recorded, rated, verified, redeemable and non-convertible debentures (NCDs).” Also, The NCDs will be listed on the Wholesale Debt Market (WDM) segment of the BSE.

Investment Manager of Embassy Office Parks REIT is Embassy Office Parks Management Services Pvt Ltd.

According to the source, this amount will be utilized to extend commercial real estate business yet, Embassy Office Parks never mentioned about the utilization of the funds. The debentures, EMBASSY REIT Series I NCD 2019, carry a face value of Rs 1,000,000 with a yield to maturity of 9.4 per cent and will mature in June 2022. The company already declared that they had got approval to raise Rs 3,650 crore in two portions.

Embassy REIT plans to utilize the proceeds from the issue to repay its current debt and for overall corporate objectives, it added.

The Debenture Committee of the board had approved the issue of debentures sum of Rs 3,650 crore on 23rd, April 2019 in two portions. While on 3rd May the committee approved the allocation of Rs 3,000 crore debentures as 1st Portion.