The transaction is the first financing by a scheduled commercial bank to an Indian REIT at the trust level under the Reserve Bank of India’s (RBI) framework introduced in June 2026 that allows commercial banks to lend to REITs.
The NCDs have been priced at a spread of 150 basis points over the three-month MIBOR OIS benchmark. The initial coupon rate is 6.97%, with the coupon to reset every three months in line with movements in the benchmark.
The NCDs, issued as Embassy REIT Series XVIII, have been rated ‘AAA/Stable’ by CARE.
The financing provides Embassy REIT with a three-year source of debt at the trust level. The transaction comes after the RBI’s June framework expanded the avenues through which scheduled commercial banks can provide financing to REITs.
Embassy REIT is India’s first listed REIT and owns a portfolio of more than 52 million square feet of office space across Bengaluru, Mumbai, Pune, the National Capital Region and Chennai.