Embassy REIT to issue 10-year bonds with 5-year put option, bankers say

India's Embassy Office Parks REIT EMBASSY.RR plans to raise 20 billion rupees ($231.98 million) through the sale of bonds maturing in 10 years, three merchant bankers said on Tuesday.

The real estate investment trust will pay a coupon of 7.25%, which would be payable on a quarterly basis, the bankers said.

The issue will have a put option at end of five years, and the current pricing is reflective of a five-year debt issue, one of the bankers added.

The coupon would be stepped up to 7.45%, payable on a quarterly basis, if the put option is not exercised, and the company has invited bids for the issue on Wednesday.

Last week, Reuters reported that Embassy Office Parks REIT was in talks with bankers to raise 20 billion rupees via bond issue.

The company did not reply to a Reuters email seeking comment.

Here is the list of deals reported so far on July 22

*Size includes base plus greenshoe for some issues

($1 = 86.2140 Indian rupees)