Embassy REIT Raises ₹400 Crore via Commercial Paper Tranche XI at 6.75% Yield

Short-term Funding Move

Embassy Office Parks REIT has completed the allotment of ₹400 Crore Commercial Papers (Tranche XI) at a 6.75% yield, as approved by the Borrowings Committee on August 12, 2026. The 91-day notes, designated "CP Tranche XI Issue", carry a yield of 6.75% and were issued on a private placement basis.

The 91-day instruments are listed on BSE to support liquidity for debt repayment and working capital, adhering to a cap of 10% of consolidated outstanding debt.

Use of Proceeds

The proceeds from the CP Tranche XI Issue are earmarked specifically for the repayment of existing debt and working capital purposes. This action finalizes the financing move initially authorized on August 10, 2026, securing immediate liquidity for the REIT, its Special Purpose Vehicles (SPVs), and its Holding Company (Holdco).

Capital Structure Management

By locking in a yield of 6.75%, Embassy Office Parks REIT can manage its maturity profile efficiently while maintaining operational liquidity. The issuance aligns with the broader strategic objective of optimizing the cost of capital and ensuring adequate funding for ongoing operations without breaching internal leverage covenants.

The decision to raise ₹400 Crores via short-term Commercial Papers at a 6.75% yield indicates a focus on immediate liquidity management rather than long-term capital expansion. By utilizing instruments with a 91-day tenure, Embassy Office Parks REIT can address near-term obligations while keeping the total exposure to this instrument class below 10% of its consolidated debt.

About Embassy Office Parks REIT

Embassy REIT is India's first publicly listed Real Estate Investment Trust and operates a 42.4 million square feet portfolio of office parks and office buildings. Embassy REIT owns and operates a 51.2 million square feet portfolio of ten infrastructure-like office parks and four city-centre office buildings in India's best-performing office markets of Bengaluru, Mumbai, Pune, and the National Capital Region (NCR) and Chennai. Embassy REIT's portfolio comprises 40.4 msf completed operating area and is home to 274 of the world's leading companies.