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New Delhi: Embassy Office Park REIT ,Embassy REIT) has taken a term loan of Rs 1,000 crore from Bajaj Housing Financeis a subsidiary of Bajaj Financethe company said in a BSE filing.
The company will use the proceeds of this loan primarily to repay existing construction debt and for general corporate purposes.
With this refinance, the Embassy REIT Said it achieved interest savings through positive refinancing spreads of ~60 basis points, and longer-term debt helps expand its debt maturity profile.
“With this refinance, our entire loan book is at fixed rates for an average tenure of 18 months, demonstrating our active capital management for the benefit of our unitholders,” said Vikas KhadloyaChief Executive Officer of Embassy REIT.
Post this loan enhancement, 100 per cent of the loan book will be at fixed rates with an average maturity of 18 months. In fact, 65 per cent of the debt book will be fixed at an average rate of two years and the remaining 35 per cent at an average rate of seven months, the company said.
Talwar Thakor And Associates Acted as legal advisor on the transaction.
On January 25, 2023, the board of directors of Embassy Office Parks Management Services, the manager of Embassy REIT, had approved availing a term loan of Rs 1,000 crore for refinancing of debt availed by the SPV of the REIT and general corporate purposes.
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