Why Companies Raise New Debt to Refinance Existing NCDs? [Example: Embassy Office Parks REIT]
Recently I read a news about Embassy Office Parks REIT. The company announced that it has raised Rs. 2,000 crore through coupon-bearing debt at an interest rate of around 7.95%. The REIT plans to use the funds to repay its Non-Convertible Debentures (NCDs) worth Rs.2,000 crore. The NCDs are maturing in October 2024. This is…