CapitaLand India Trust Management Pte. plans to raise as much as 50 billion rupees ($550 million) of rupee-denominated debt in India over the next three years, in an effort to improve tax efficiency and lower currency hedging costs, Chief Executive Officer Gauri Shankar Nagabhushanam said.
The move marks a strategic pivot for the Singapore-listed trust as higher global interest rates and currency volatility prompt real estate firms to rethink their funding structures. Increasing local borrowings would allow the trust to avoid a 15% withholding tax on Singapore-based debt and trim hedging costs.
Following the planned issuance, local currency borrowings are expected to account for as much as 50% of the trust's loan book, up from about 16% currently, the chief executive officer said in a media briefing on Tuesday. The company currently has S$300 million debt in India.
CapitaLand India manages S$3.8 billion ($3 billion) of assets across IT business parks, industrial and logistics facilities, and data centers in India, according to latest filings.
“We will continue to onshore more debt and optimize our capital structure,” Nagabhushanam said.
The trust completed its first divestment in 2025, selling a 20% stake in three data centers that valued the assets at about 52 billion rupees.
CapitaLand India Trust now reviews potential non-core asset sales regularly and would seek to generate around S$100 million in capital inflows, provided proceeds can be redeployed into higher-return assets or used to support distributions, Nagabhushanam added.
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