‘Investment trusts to expand debt fundraising as yields drop’

India’s asset-backed investment trusts, like real estate investment trusts (Reits) and infrastructure investment trusts (InvITs), are expected to expand debt fundraising as yields drop. According to data, these trusts raised over ₹17,800 crore ($2.07 billion) in the first half of 2025. 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, making them attractive for debt financing. With falling interest rates and corporate bond yields tumbling, trusts like Embassy Office Parks Reit and IndiGrid Infrastructure Trust are tapping the bond market for funding, which provides clarity on financial planning and attracts institutional investors. Read Article