India's investment trusts to expand debt fundraising as yields drop, analysts say
by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling
interest rates
continue to fuel strong investor demand, analysts said.
The
real estate
investment trusts (
REIT
) and
infrastructure investment
trusts (
InvIT
) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database.
Explore courses from Top Institutes in
Select a Course Category
others
Design Thinking
MCA
Data Science
Management
Others
Data Science
Leadership
Product Management
Artificial Intelligence
MBA
Project Management
Digital Marketing
Public Policy
CXO
Data Analytics
Cybersecurity
Healthcare
Degree
Technology
Skills you'll gain:
Duration:
16 Weeks
Indian School of Business
CERT - ISB Cybersecurity for Leaders Program India
Starts on
undefined
Get Details
"Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates.
Bonds Corner
Powered By
Corporate bonds in India: From institutional stronghold to broader participation
India's corporate bond market sees record growth in FY25. Issuance rises by 28%, signaling increased corporate capex. The overall bond market touches ₹226 lakh crore. Retail participation remains low, but accessibility improves with smaller investment sizes. Interest rates ease, making bonds attractive. Platforms like Jiraaf simplify bond investments. Corporate bonds offer a balanced risk-return profile.
India bonds advance as traders build positions for another rate cut
Rupee to track dollar recovery, bond market focused on rate cut bets
IndusInd Bank to consider raising funds via long-term bonds
India bonds flat, traders eye debt supply for cues
Browse all Bonds News with
"The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting
institutional investors
seeking yield-bearing, asset-backed instruments."
Corporate bond yields
have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates.
Live Events
Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the
bond market
. Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks.
Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm.
The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns.
Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers.
"The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility.
With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform.
($1 = 86.1700 Indian rupees)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Karnataka government to drop proposal to increase daily working hours, says employees union
The Karnataka State IT/ITeS Employees Union ( KITU ) on Tuesday said that the state government has decided to drop the proposed move to increase the daily working hours in the IT/ITeS sector . Sources in the Karnataka Labour Minister Santosh Lad's office confirmed that it has been decided not to increase the working hours of the employees. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Others Public Policy Artificial Intelligence Cybersecurity others Healthcare PGDM Finance Project Management Management Design Thinking Product Management Operations Management healthcare CXO Data Science Leadership MCA Degree Data Analytics Technology MBA Data Science Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Noting that the law permitted a maximum of 10 working hours per day including overtime, KITU had alleged that the proposed amendment would legalise 12-hour shifts and facilitate a two-shift system, potentially eliminating one-third of the workforce. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cardiologist: The Best Method for a Flat Stomach After 50 (It's Genius!) Lulutox Undo In a statement, the union, which has been protesting over the past one-and-a-half months against the proposal, said, "In a meeting with KITU office bearers, Additional Labour Commissioner G Manjunath communicated the decision to drop the proposed amendment." The proposed 'Karnataka Shops and Commercial Establishments (Amendment) Bill 2025' sought to increase working hours by amending the Karnataka Shops and Commercial Establishments Act , 1961, KITU said. Live Events The Bill was presented during a stakeholder meeting convened by the Labour Department on June 18. KITU, the registered union representing IT sector employees in Karnataka, had strongly opposed the amendment during the meeting, stating that it was a direct attack on a worker's fundamental right to a personal life. "This relentless struggle compelled the Karnataka government to retreat from its attempt to extend working hours in the sector," KITU general secretary Suhas Adiga said.
Time of India
2 hours ago
- Time of India
US Fed opens policy meeting, set to hold rates steady
The US Federal Reserve opened its two-day policy meeting Tuesday, with the central bank widely expected to hold off on further interest rate cuts despite fierce political pressure from President Donald Trump to slash levels. Fed policymakers have kept the benchmark lending rate unchanged since their last rate reduction in December, as officials wait for clarity on how Trump's tariffs are impacting the world's biggest economy. Explore courses from Top Institutes in Please select course: Select a Course Category Data Analytics Finance Project Management MCA Operations Management Public Policy PGDM Data Science Digital Marketing Cybersecurity Healthcare healthcare Technology Data Science Leadership others Design Thinking Management CXO Artificial Intelligence Degree Product Management MBA Others Skills you'll gain: Data Analysis & Visualization Predictive Analytics & Machine Learning Business Intelligence & Data-Driven Decision Making Analytics Strategy & Implementation Duration: 12 Weeks Indian School of Business Applied Business Analytics Starts on Jun 13, 2024 Get Details Their patient approach has riled the president, who has chastised Fed Chair Jerome Powell on multiple occasions, calling him a "numbskull" and a "moron." On Tuesday, the Fed said in a statement that its policy meeting started at 9:00 am US Eastern time (1300 GMT) as scheduled. The case for holding interest rates steady at a range between 4.25 percent and 4.50 percent this week has been made by several Fed speakers, said JP Morgan chief US economist Michael Feroli in a recent note. Live Events Inflation remains above the Fed's longer-term target of two percent, risks still persist and the labor market is near full employment, he added. The Fed has signalled it is waiting on the effects of Trump's sweeping tariffs on allies and competitors alike to begin to show up in economic data . As the central bank mulls changes to monetary policy, officials are seeking a balance between price stability and maximum employment. Analysts are expecting to see some dissent from Fed policymakers at the end of their meeting Wednesday, given that a couple of officials have signaled openness to rate cuts as soon as in July. "It will be interesting to watch whether Powell alludes to some potential policy easing before year-end" or if he avoids explicit forward guidance given differences among the Fed's rate-setting committee, said EY chief economist Gregory Daco. "With no imminent need to act, and a fractured FOMC facing asymmetric risks, the Fed will likely wait until September to deliver the next 25 basis points rate cut," Daco added, referring to the Federal Open Market Committee . The Fed said Governor Adriana Kugler would not be attending the meeting "due to a personal matter."
Time of India
3 hours ago
- Time of India
Andhra Pradesh: YSRCP objects to "restrictions" on YS Jagan's Nellore visit
YSR Congress Party on Tuesday took strong objection to the "restrictions" being imposed in Nellore in the wake of former Chief Minister YS Jagan Mohan Reddy 's visit. "Notices were issued to our leaders, and many restrictions were imposed to scuttle the scheduled visit of YS Jagan Mohan Reddy to Nellore jail, where he will visit KakGovardhan Reddy, who was detained illegally," Former TTD Chairman and YSR Congress leader Bhumana Karunakar Reddy said. Explore courses from Top Institutes in Please select course: Select a Course Category Leadership others Operations Management Technology Product Management Data Science Design Thinking CXO Public Policy Degree Artificial Intelligence MCA Healthcare PGDM Others MBA Data Science Project Management Data Analytics Cybersecurity Management Digital Marketing healthcare Finance Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK-Women Leadership Programme INDIA Starts on undefined Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode Advanced Strategic Management Programme Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Indore Executive Programme in Business Management Starts on undefined Get Details Skills you'll gain: Opportunities & Outlining Plans to use AI & ML Applying Data-Driven Business Innovation Best Practices Changing Culture to Integrate AI-Enabled Technologies Ethics, Privacy and Regulations in AI & ML Duration: 20 Weeks Indian School of Business ISB Leadership in AI Starts on May 14, 2024 Get Details Skills you'll gain: Financial Accounting & Analysis Financial Instruments & Markets Corporate Finance & Valuation Investment Management & Banking Duration: 12 Months IIM Kozhikode IIMK Professional Certificate in Financial Analysis and Financial Management Starts on Mar 30, 2024 Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode SEPO - IIMK CEO Programme India Starts on undefined Get Details Skills you'll gain: Critical Thinking & Decision-Making Skills Power of Emerging Technologies Innovation and Drive Organizational Change Fostering a Culture of Innovation Duration: 9 Months MIT xPRO MIT Technology Leadership and Innovation Starts on May 14, 2024 Get Details Skills you'll gain: Duration: 22 Weeks Indian School of Business SEPO - ISB Venture Capital & Private Equity India Starts on undefined Get Details Skills you'll gain: Duration: 18 Weeks 109820388 Strategic Marketing for Leaders: Leveraging AI for Growth Starts on undefined Get Details Skills you'll gain: Strategic Thinking & Planning Competitive Advantage & Market Positioning Strategic Leadership & Decision-Making Change Management & Organizational Transformation Duration: 1 Year IIM Kozhikode IIMK Advanced Strategic Management Programme Starts on Mar 30, 2024 Get Details Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML SLP India Starts on undefined Get Details Skills you'll gain: Duration: 12 Months IIM Kozhikode Senior Management Programme Starts on undefined Get Details Skills you'll gain: Duration: 12 Weeks IIM Kozhikode CERT-IIMK EPIS Async India Starts on undefined Get Details "The official machinery should understand that YS Jagan Mohan Reddy is a popular leader and has a large following, and the Party need not mobilise any crowd as people will voluntarily come on their own, and it is absurd to issue notices to our leaders and impose restrictions about people gathering during his visit," he added. Taking a dig at the P4 concept of Chief Minister Chandrababu Naidu , he said, there was a shift from governance to philosophy and helping the poor is a philanthropic work and is in no way part of governance. He alleged that Chandrababu has amassed so much wealth for himself that he can sponsor the 20 lakh families identified for P4, thereby avoiding the need to coerce the state administration and set targets. Live Events "None of the TDP MLAs and leaders had come forward to sponsor any family under the much hyped P4 concept, but they started collecting funds in the name of P4, which shows the way governance is being run in the State," he said. Jagan Mohan Reddy will be visiting the SPSR Nellore district on July 31. Meanwhile, Former minister and YSRCP East Godavari district president Chelluboina Srinivasa Venugopala Krishna expressed severe anger over the condition of welfare hostels under the coalition government led by Andhra Pradesh Chief Minister Chandrababu Naidu. Speaking to the media at Rajamahendravaram Press Club, Krishna stated that the coalition government is playing with the lives of students. "Substandard food is being served in hostels. Quality menu schemes have been scrapped. Hostels have turned into living hells due to government negligence," he alleged. He blamed Education Minister Nara Lokesh's inefficiency for the deteriorating state of hostel facilities, stating that even proper meals are not being provided.
