Embassy Office Parks REIT, India’s biggest listed real estate investment trust, has locked in ₹1,550 crore in fresh funding through a mix of bonds and loans, marking a notable win in today’s volatile interest rate climate.

The funding package features ₹750 crore raised via its latest non-convertible debenture (NCD) issue, priced at 6.97%. This marks the lowest coupon rate the REIT has secured in the past four years, thanks largely to strong interest from institutional investors such as mutual funds, which helped push the rate below the originally offered level. Alongside this, the REIT has secured an ₹800 crore term loan from a leading bank, carrying a floating rate of 7.40% and structured over a lengthy 15-year term.

Ritwik Bhattacharjee, Chief Executive Officer of Embassy REIT, remarked: “The fund raise saw strong participation from both mutual funds and leading banks. The ₹750 crore NCD issuance at a 6.97% coupon marks the lowest rate we have achieved in the past four years, and it reaffirms our position as a top-tier credit in India’s commercial real estate sector. This refinancing continues to support our strategy of optimally managing our balance sheet and positions us well to finance our future growth initiatives.”

This move comes as the REIT continues to strengthen its financial footing, with the refinancing expected to generate annual interest savings of roughly 113 basis points. Such savings are seen as a direct boost to cash flows, which remains a crucial metric for unitholders watching returns.

The deal also signals strong confidence among lenders and investors in the REIT’s position within India’s commercial property market, especially given its focus on high-quality office spaces.

Embassy REIT’s strategy of using the debt markets to trim borrowing costs isn’t new. In May, the REIT completed a ₹2,000 crore bond issue, priced at 7.21%, again to refinance existing obligations.

The REIT has been particularly active across its portfolio. In the past financial year, it outpaced leasing forecasts, locking in 6.6 million square feet of leases—22% above its target. Its revenues and operating income both climbed by 10% year-on-year, with distributions to unitholders rising 8% to ₹23.01 per unit.

Portfolio occupancy remains healthy at 91%, with full occupancy in Mumbai and high levels across Bengaluru and Chennai. Recent acquisitions and infrastructure investments, including a premium tech park in Chennai and funding towards a metro station in Bengaluru, have further cemented its market position.

Major leasing deals in recent months have included significant space taken by Rubrik and Commonwealth Bank of Australia, adding momentum to Embassy’s leasing drive.