CapitaLand India Trust has raised ₹915 crore through its maiden onshore bond issuance in India. The move marks an important step in strengthening its domestic funding base. The three-year bond carries a AAA credit rating and offers a coupon of 7.25 percent. Strong investor demand supported the successful issue.
The fundraise is part of the trust’s long-term plan to increase India-based debt to around 50 percent of its total borrowings. This target is expected to be achieved over the next three to four years. At present, onshore borrowings form a smaller share of its overall debt. By shifting more funding to India, the trust aims to reduce exposure to currency volatility and improve cost efficiency.
Raising debt locally also helps avoid withholding taxes linked to overseas borrowings. It provides a natural hedge against foreign exchange risks. This approach supports more stable cash flows and predictable financial performance. The bond proceeds will mainly be used to refinance existing debt and meet general corporate needs.
CapitaLand India Trust continues to focus on capital recycling as part of its growth strategy. The trust has divested stakes in select office and data centre assets. These transactions help unlock value from mature properties. The capital is then redeployed into new development projects and growth opportunities.
The trust has a strong development pipeline in India. It is focused on high-quality office assets and data centres. One of its key upcoming projects is a large office development in North Bengaluru. The project is scheduled for completion in the coming years. The data centre portfolio has also seen healthy pre-commitments from global occupiers. This reflects steady demand for digital infrastructure.
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