According to a BSE filing from the firm, Embassy Office Parks REIT (Embassy REIT) has secured a term loan from Bajaj Housing Finance, a division of Bajaj Finance for Rs 1,000 crore. The corporation will largely use the money raised from this debt raising to pay down existing construction debt as well as for basic business needs. The long tenor loan aids in extending Embassy REIT's debt maturity profile, and the refinance resulted in interest savings of 60 basis points, according to Embassy REIT.
According to a BSE filing from the firm, Embassy Office Parks REIT (Embassy REIT) has secured a term loan from Bajaj Housing Finance, a division of Bajaj Finance for Rs 1,000 crore. The corporation will largely use the money raised from this debt raising to pay down existing construction debt as well as for basic business needs. The long tenor loan aids in extending Embassy REIT's debt maturity profile, and the refinance resulted in interest savings of 60 basis points, according to Embassy REIT.
In an interview captured by ET Realty, Vikaash Khdloya, CEO of Embassy REIT said, "with this refinance, our whole debt book is at fixed rates for an average of 18 months illustrating our aggressive capital management to the advantage of our unitholders.” According to the corporation, fixed rates will apply to 65% of the debt book for an average of two years and to the remaining 35% for an average of seven months.
Talwar Thakore and Partners provided legal advice for the deal. The board of directors of Embassy Office Parks Management Services approved taking out a term loan of Rs 1,000 crore on January 25, 2023, for general corporate purposes and the refinancing of debt taken out by SPVs of the REIT.
Advertisement
Facebook
Whatsapp
