Nokia renews lease of 5.11 lakh sq ft space at Embassy Manyata in Bengaluru

October 21, 2021
Representative Image
Representative Image

NEW DELHI: Embassy Office Parks REIT (Embassy REIT) has completed a lease renewal in Embassy Manyata, Bengaluru with Nokia Solutions and Networks India (Nokia India), Indian subsidiary of the Finland-based Nokia, the company said in a media release.

Embassy Manyata has an operational area of around 12 million sq ft.

The company recently raised Rs 4,600 crore coupon-bearing debt at an interest rate of 6.5%. The proceeds from this debt raise is to be utilized by Embassy REIT to repay its existing zero-coupon bond outstanding of Rs 4,530 crore.

The debenture committee approved the allotment of Rs 3,100 crore Series V rupee-denominated, listed, rated, secured, redeemable, transferable NCDs by way of private placement at 6.5% average fixed coupon payable quarterly. Out of this, Rs 1,100 crore is at 7% for five-year NCDs and Rs 2,000 crore is at 6.3% for three-year NCDs.

Further, Embassy REIT has secured a term loan facility at SPV-level from a bank for Rs 1,500 crore at 6.4% floating coupon.

Both these proceeds, totaling Rs 4,600 crore will be used for early refinance of zero-coupon bond (Series I NCDs) which carried an average 9.4% coupon on November 2, 2021. Embassy REIT will be able to secure c.300 basis points interest savings annually through this refinance.

Post this refinance, proforma debt of Embassy REIT would be Rs 11,532 crore at 6.8% interest rate with a maturity of 3.7 years.

Embassy REIT owns and operates a 42.4 million sq ft portfolio of eight infrastructure-like office parks and four city‑centre office buildings in Bengaluru, Mumbai, Pune and the National Capital Region (NCR).

Leave a Comment