Embassy Office Parks REIT has formally announced its decision not to exercise the call option on its Series VB Non-Convertible Debentures worth ₹11,000,000,000, with the call option date scheduled for April 18, 2026. The REIT communicated this decision to BSE Limited on March 06, 2026, through its manager Embassy Office Parks Management Services Private Limited.

Debenture Details and Structure

The debentures in question were originally issued under a Debenture Trust Deed executed on October 18, 2021, between Embassy REIT and Catalyst Trusteeship Limited as the debenture trustee. The deed was subsequently amended on December 01, 2025. The debentures carry the ISIN INE041007084 and are listed under scrip code 973546 on BSE.

Call Option Terms and Decision

Under the terms of the Debenture Trust Deed, Embassy REIT held the right to redeem all debentures in full on the designated call option date. The REIT was required to deliver a Call Option Notice to debenture holders at least three business days prior to the call option date, meaning any notice would need to be issued by April 14, 2026.

The company's decision was communicated in accordance with Regulation 15 read with Regulation 23(7) of the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021. Vinitha Menon, Head - Company Secretary and Compliance Officer, signed the formal intimation on behalf of the REIT.

Regulatory Compliance

The announcement demonstrates Embassy REIT's adherence to regulatory requirements for transparency in debt management decisions. By formally notifying both the stock exchange and debenture holders well in advance of the call option date, the REIT has ensured compliance with SEBI's disclosure norms for non-convertible securities.

The decision not to exercise the call option means the debentures will continue under their existing terms and conditions as outlined in the original trust deed and subsequent amendment. This allows debenture holders to retain their investment in the REIT's debt securities beyond the first call option date.

Embassy Office Parks REIT , India's first listed REIT and the largest office REIT in Asia by area, has successfully raised ₹1,400 crores through its Series XVI Non-Convertible Debenture issuance. The 10-year NCD was priced at an attractive fixed coupon of 7.49% and was fully subscribed by one of the largest life insurance companies in India, demonstrating strong institutional confidence in the REIT's credit quality and long-term strategy.

Transaction Structure and Subscription Details

The Series XVI Debentures comprise 1,40,000 units with a face value of ₹1,00,000 each, issued through private placement. The Debenture Committee of the Board of Directors approved the allotment, with the coupon rate discovered through BSE Limited's Electronic Book Building Platform using a multiple yield allotment method.

Management Commentary and Strategic Impact

Amit Shetty, Chief Executive Officer of Embassy REIT, highlighted the significance of this fundraising achievement. The transaction enables the REIT to lock in an attractive fixed coupon of 7.49% for a 10-year period as part of their broader capital-raising strategy to increase the average duration of their debt stack while market conditions remain favorable.

Annual Fundraising Milestone

This latest debenture issue marks Embassy REIT's second 10-year debt issuance within FY2026, contributing to a total fundraising of ₹3,400 crores of 10-year NCDs during the financial year. The achievement effectively doubles the duration of the REIT's fixed rate debt book, highlighting the organization's ability to consistently access long-term capital at competitive rates.

Regulatory Compliance and Market Position

The Series XVI Debentures are proposed to be listed on the Wholesale Debt Market Segment of BSE Limited. These securities are listed, rated, secured, redeemable, transferable, and rupee-denominated non-convertible debentures. The NCD investor base across insurance and pension sectors has expanded to over 23 institutional investors, reflecting strong alignment with long-tenor investment requirements and Embassy REIT's position as a preferred investment vehicle in the commercial real estate sector.