Embassy REIT Raises ₹1,000 Crore Through NCDs From European Bank Under RBI Framework

Embassy Office Parks REIT has raised ₹1,000 crore through non-convertible debentures (NCDs), with the entire issue subscribed by a European multinational bank. The fundraising will be used to repay existing debt and meet expenses related to the issue, according to the REIT's exchange filing.

The transaction comes after the Reserve Bank of India opened a new financing route for REITs, allowing scheduled commercial banks to lend to the sector under a framework introduced in June 2026. Embassy REIT's issue is the first trust-level financing by a scheduled commercial bank to an Indian REIT under the new framework, according to the company.

Embassy REIT allotted 1,00,000 Series XVIII NCDs with a face value of ₹1 lakh each on September 24. The securities carry an initial coupon of 6.97% a year, linked to the three-month MIBOR-OIS rate plus a spread of 150 basis points, with the coupon resetting every quarter. The issue has a tenure of 2 years, 11 months and 28 days.

Embassy REIT NCD Issue: ₹1,000 Crore To Refinance Existing Debt

The latest fundraising is primarily a refinancing exercise rather than a fresh acquisition-led fundraise. Embassy REIT's manager had approved the ₹1,000 crore NCD issue for repayment of existing debt and issue-related expenses. The borrowing forms part of a larger debt-raising programme of up to ₹9,000 crore approved by the REIT's board in April 2026.

The issue price was discovered through BSE's electronic book-building platform using the multiple-yield allotment method on September 23. Embassy REIT received ₹1,000.07 crore against the ₹1,000 crore principal amount.

The NCDs are secured, rated, redeemable and transferable securities and are proposed to be listed on the wholesale debt market segment of BSE. The initial coupon of 6.97% will move with the three-month MIBOR-OIS benchmark, with the 150-basis-point spread fixed over the tenor.

Embassy REIT Gets Access To Bank Financing Under RBI Rules

The significance of the transaction extends beyond the amount raised. The issue gives Embassy REIT access to a European bank at the trust level at a time when the RBI has expanded the financing avenues available to REITs.

The move also comes as Embassy REIT manages upcoming debt requirements. The REIT had earlier decided not to exercise the first call option on ₹1,000 crore of Series VI NCDs due for the first call date in October 2026. Its latest borrowing therefore adds to the refinancing options available as existing liabilities come up for repayment.

For the wider REIT market, the transaction provides an early example of how the RBI's revised framework can translate into bank funding at the trust level. The change potentially broadens the pool of lenders available to listed REITs beyond traditional debt-market instruments.

Embassy REIT has continued to raise debt alongside its operating growth. In March 2026, it raised ₹1,400 crore through a 10-year NCD issue from an insurance major, according to its disclosures. The REIT reported 17% year-on-year growth in revenue and net operating income in the June 2026 quarter and leased 1.3 million square feet during the period.

The ₹1,000 crore NCD issue therefore adds another layer to Embassy REIT's debt-management strategy, while providing an early test of the expanded bank-financing route available to India's REIT sector.

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