EOEmbassy Office Parks REIT542602NCD issuance

Raises ₹1,000 Crores via Series XVIII NCDs in First Bank Financing at REIT Trust Level

Embassy REIT has raised ₹1,000 crores through three-year floating-rate NCDs (Series XVIII), fully subscribed by a leading European multinational bank.

By ScoutQuest · Fri 25 Sep 2026, 10:33 AM IST · 2 min read

Amount Raised

₹1,000 crores

Tenor

three-year

Initial Coupon

6.97%

Pricing Spread

150 basis points over three-month MIBOR OIS benchmark

Credit Rating

AAA/Stable by CARE

What was announced

Embassy Office Parks REIT has raised ₹1,000 crores by issuing Non-Convertible Debentures (NCDs) under its Series XVIII. The entire issue was subscribed by a single leading European multinational bank.

Terms of the borrowing

• Amount: ₹1,000 crores
• Tenor: three-year
• Initial coupon: 6.97%
• Pricing: 150 basis points over the three-month MIBOR OIS benchmark
• The coupon resets every three months in line with the movement in the benchmark, so the interest cost can move up or down over the life of the instrument
• Credit rating: "AAA/Stable" by CARE

Why it is being called a first

The REIT states this is the first financing by a scheduled commercial bank to an Indian REIT at the trust level. It follows the Reserve Bank of India's framework announced in June 2026 that permits commercial banks to finance REITs. Until this framework, REITs typically relied on capital market instruments and other lenders for funding at the trust level.

About the portfolio

Embassy REIT is India's first publicly listed Real Estate Investment Trust and describes itself as the largest office REIT in Asia by area. Its portfolio spans over 52 million square feet of office space across Bengaluru, Mumbai, Pune, NCR and Chennai, comprising 14 premium office ecosystems with 285 corporate occupiers. It also includes five operational business hotels, two hotels under development, and a 100 MW solar park.

How investors may read this

The announcement signals a new funding channel opening up for Indian REITs, and a floating-rate structure means borrowing costs will track the benchmark rather than stay fixed. As with any debt raise, it adds to the REIT's borrowings; the stated AAA/Stable rating reflects the rating agency's view of the instrument's credit quality. The update does not tie the funds to any specific use.

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