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Embassy Office Parks REIT is set to raise INR 7 billion through the issuance of three-year bonds, according to bankers involved in the transaction. The real estate investment trust has fixed the coupon at 7.49%, payable quarterly, and has invited commitment bids for the proposed issue on June 22. The bonds have been assigned AAA ratings by CRISIL and CARE Ratings, reflecting the highest level of credit quality. The planned fundraising comes amid continued activity in India’s corporate debt market, where issuers across real estate, infrastructure, renewable energy and utilities sectors are tapping institutional investors for capital. Other borrowers preparing bond issuances in the coming days include IREDA and Torrent Power.
Embassy Office Parks REIT plans to raise INR 7 billion through the issuance of bonds with a maturity of three years, with commitment bids for the proposed fundraising scheduled for June 22, according to bankers familiar with the transaction.
The office real estate investment trust has fixed the coupon on the bonds at 7.49%, payable on a quarterly basis. Bankers said the company has invited commitment bids ahead of the issuance as it seeks to raise funds from the domestic debt market.
Embassy Office Parks REIT did not immediately respond to a Reuters request for comment on the proposed borrowing programme.
The bond issue has received AAA ratings from CRISIL and CARE Ratings, placing it in the highest credit rating category. Such ratings typically indicate a strong capacity to meet financial obligations and are often favoured by institutional investors participating in the corporate bond market.
The proposed debt sale adds to a series of corporate bond issuances scheduled in the domestic market over the coming days. Companies from sectors including commercial real estate, renewable energy, infrastructure financing and power utilities are seeking to raise long-term capital through fixed-income instruments.
Among the issuers expected to access the market on June 22 is state-owned Indian Renewable Energy Development Agency (IREDA), which plans to raise up to INR 15 billion through bonds maturing in three years and six days. The fundraising comprises a base issue of INR 3 billion and a greenshoe option of INR 12 billion. The coupon for the issue will be determined through the bidding process. The bonds have been assigned AAA ratings by ICRA and India Ratings.
Torrent Power is also preparing multiple bond offerings, with bidding scheduled for June 23. The company plans to raise INR 7.5 billion through three-year bonds carrying a coupon of 8.10%, INR 10 billion through five-year bonds at 8.15%, INR 10 billion through seven-year bonds at 8.20%, and INR 10.5 billion through 10-year bonds also offering 8.20%.
The Torrent Power issuances have received AA+ ratings from CRISIL and India Ratings. The fundraising programme spans a range of maturities, allowing investors to participate across different duration profiles.
The latest bond issuances highlight sustained activity in India’s debt capital market, where issuers continue to utilise bond offerings as a source of funding. For real estate investment trusts such as Embassy Office Parks REIT, access to the bond market provides an additional avenue to secure capital while diversifying funding sources beyond conventional bank financing.
The proposed issuance will be closely watched by market participants as institutional investors assess opportunities across a growing pipeline of highly rated corporate debt offerings.
Source - Reuters
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