India’s investment trusts to expand debt fundraising as yields drop, analysts say

Debt fundraising by India’s asset-backed investment trusts (REITs and InvITs) is expected to rise as falling interest rates fuel investor demand. In the first half of 2025, these trusts raised over ₹178 billion ($2.07 billion), compared to ₹56 billion in the same period last year. Arka Mookerjee, partner at JSA Advocates and Solicitors, notes that bonds offer a lower cost of capital for highly rated trusts with stable cash flows. The predictable income profiles of REITs and InvITs make them suited for debt financing, attracting institutional investors. With corporate bond yields tumbling and infrastructure/real estate sectors gaining momentum, investors see REITs and InvITs as a blend of fixed-income stability and long-term growth. Read Article