Embassy Office Parks Real Estate Investment Trust (REIT) has raised Rs. 10 bn through the issue of non-convertible debentures (NCDs) to a European bank. The funds will be used to refinance the trust’s existing debt, according to a regulatory filing.

The three-year floating-rate NCDs were fully subscribed by a leading European multinational bank. The securities were issued at an initial coupon rate of 6.97 per cent, providing the trust with a debt-financing instrument linked to prevailing interest rates.

The transaction is the first financing by a scheduled commercial bank to an Indian REIT at the trust level. It follows the Reserve Bank of India’s framework announced in June 2026, which permitted commercial banks to provide financing to REITs.

Amit Shetty, chief executive officer of Embassy Reit, said the fund-raising marked a significant milestone for the trust and reflected the continuing development of India’s REIT market. He added that regulatory support from the Securities and Exchange Board of India and the Reserve Bank of India had strengthened REITs’ access to long-term funding.

Embassy Reit owns and operates a portfolio comprising more than 52 mn square feet of office space. Its properties are spread across Bengaluru, Mumbai, Pune, the National Capital Region and Chennai. The refinancing is expected to support the trust’s existing debt-management strategy while broadening its access to institutional funding sources.

The issue also highlights the changing financing environment for Indian REITs after the regulatory framework was expanded to include commercial bank funding at the trust level. The transaction was completed through privately placed NCDs and represents a direct lending relationship between the bank and the REIT.