Embassy Developments Allots ₹1,020 Crore of NCDs at 11% Coupon Under Expanded Fundraising Programme
Embassy Developments Allots ₹1,020 Crore in Secured NCDs
On July 15, 2026, Embassy Developments' Board committee approved the allotment of ₹1,020 crore in senior, secured, redeemable non-convertible debentures (NCDs), marking a significant draw from the developer's recently expanded debt-raising capacity.
Instrument Structure
The NCDs carry an 11% coupon rate and are unrated and unlisted. The instruments are secured by company assets and mature in 2029 with quarterly redemption schedules. Each NCD has a face value of ₹1,00,000, with a total of 1,02,000 debentures issued via private placement.
The allotment comprises two tranches with distinct payment schedules. For the ₹25 crore tranche, interest payments commence from September 30, 2026, while for the larger ₹995 crore tranche, interest payments begin from December 31, 2027.
Capital Deployment and Use of Proceeds
The company will utilize approximately ₹920 crore of the aggregate proceeds towards repayment or refinancing of existing indebtedness. The balance will be deployed for project construction, working capital requirements, and other general corporate purposes.
Embassy Developments retains the right to undertake partial or full prepayment of the debentures on or before the respective maturity dates using surplus funds.
Part of Broader Fundraising Programme
The July 15 allotment draws from a significantly expanded debt-raising framework. In July 2026, the board committee approved raising an additional ₹1,170 crore via privately placed NCDs, increasing the total authorised issue size from ₹400 crore to ₹1,570 crore. Earlier in 2026, Embassy Developments had completed allotments of ₹250 crore on January 30 and ₹25 crore on March 16.
The company has positioned these NCDs as enabling authorisation to be issued in one or more tranches, allowing it to align borrowing with construction milestones, refinance windows, and near-term working capital requirements.
Regulatory Compliance and Market Position
The disclosure was made to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Embassy Developments confirmed that the transaction adheres to the provisions of the Companies Act, 2013 and other applicable laws.
Since the NCDs are unlisted and unrated, the placements are typically targeted at institutional or sophisticated investors who are comfortable assessing credit risk without a public rating.
Developer Profile
Embassy Group is an Indian real estate developer based in Bengaluru, established in 1993. The company has a presence across seven Indian cities with more than 40 residential and commercial projects spanning 38 msf of leasable and saleable area. As of FY26, the company has a land bank of 3,251 acres, and the total estimated gross development value (GDV) of its portfolio stood at around ₹57,700 crore.
In FY26, the company launched six projects with a GDV of ₹16,300 crore and incurred construction expenditure of ₹1,182 crore during the year.