Archive · 25 Sep 2026
Embassy REIT Raises ₹1,000 Crore Through First Bank NCDs
Embassy REIT borrowed ₹1,000 crore by selling special debt instruments called NCDs.
A European bank bought all of these instruments.
The borrowing will last for three years.
Its interest rate starts at 6.97%.
The rate can change every three months because it follows a market benchmark.
This is the first time a scheduled commercial bank has financed an Indian REIT directly at the trust level under the new RBI rules.
The NCDs received a AAA/Stable rating from CARE.
Embassy REIT owns office buildings in several Indian cities.
Embassy Office Parks REIT raised ₹1,000 crore through three-year floating-rate non-convertible debentures.
A European multinational bank fully subscribed to the NCD issuance.
The transaction is the first trust-level financing by a scheduled commercial bank to an Indian REIT under the Reserve Bank of India’s framework.
The NCDs carry an initial 6.97% coupon, resetting every three months over the three-month MIBOR OIS benchmark.
The securities are rated AAA/Stable by CARE and provide Embassy REIT with three years of trust-level debt.
- Who
- Embassy Office Parks REIT and an unnamed European multinational bank.
- What
- Embassy REIT raised ₹1,000 crore through three-year floating-rate non-convertible debentures.
- When
- The company announced the transaction on September 25; the RBI framework was introduced in June 2026.
- Where
- The financing was arranged at Embassy REIT’s trust level in India.
- Why
- The transaction gives Embassy REIT a three-year source of debt after RBI rules expanded scheduled commercial banks’ ability to finance REITs.
- Amount raised
- ₹1,000 crore
- Instrument
- Three-year floating-rate non-convertible debentures
- Subscriber
- A European multinational bank
- Initial coupon
- 6.97%
- Pricing
- 150 basis points over the three-month MIBOR OIS benchmark
- Credit rating
- AAA/Stable by CARE
- Issuance
- Embassy REIT Series XVIII
- Portfolio
- More than 52 million square feet of office space