CapitaLand India Trust shifts debt to rupees as INR falls

Singapore-based CapitaLand India Trust (CLINT) is in the process of converting outstanding debt held in Singapore dollars to rupees since INR has depreciated quite a lot in the past 12-18 months, a senior executive said.

As of June 2026, CLINT, which manages around 22 millions square feet spread across Bangalore, Chennai, Hyderabad, Pune and Mumbai, had approximately S$1.7 billion (roughly Rs 8,820 crore) of borrowings. As of June,  CLINT’s assets under management stood at S$3.5 billion.

About 53% of the debt is already aligned to the Indian Rupee, comprising 29% of onshore INR debt and a further 24% that is economically hedged into INR through structures in Singapore.


“Our debt onshoring programme is part of a broader capital management strategy to progressively align our funding structure with the markets in which we operate. Given that our assets and cash flows are primarily generated in India, increasing the proportion of Rupee-denominated debt allows us to better match our liabilities with our underlying business exposure,” said Gauri Shankar Nagabhushanam, CEO, CapitaLand India Trust.

Since the start of 2026, it has completed two debt onshoring tranches, amounting to approximately SGD 204 million in total.

“Besides enhancing our natural hedge by reducing foreign currency exposure on this portion of debt, it also allows us to increase distributable cash flows for unitholders. The first tranche completed in January 2026 contributed approximately 3.4% accretion to DPU, while the second tranche completed in July 2026 added a further 1.6%, taking the cumulative DPU accretion from these exercises to close to 5%,” said Nagabhushanam.

Average foreign exchange rates for the INR depreciated 12% YoY on Singapore dollar terms.

Consequently, 1H 2026 total property income and NPI decreased 8% YoY and 5% YoY to S$137.6 million and S$107.5 million, respectively.

'Natural Hedge'

“As such, around 47% of our borrowings remain exposed to foreign currency movements. The ongoing debt onshoring programme is aimed at further strengthening this natural hedge while improving capital efficiency and distributable cash flows. We will continue to evaluate opportunities to optimise our capital structure in a prudent and disciplined manner, while maintaining a balanced and diversified funding profile,” said Nagabhushanam.

Recently, CapitaLand sold a 1.9 million sq ft commercial property in Gurugram to EAAA Alternatives for Rs 2,050 crore, as it looks to churn capital through major exits and expand its portfolio.

Earlier, CapitaLand India Trust (CLINT) divested two major IT park assets — CyberVale in Chennai and CyberPearl in Hyderabad — for approximately Rs 1,103 crore (about S$161.7 million).

CapitaLand India Trust reported an 8% year-on-year (YoY) increase in distributable income to S$64.2 million for the six months ended 30 June 2026 (1H 2026). The positive performance was driven by income contributions from newly completed development and CapitaLand Data Centre Navi Mumbai Tower 1, stronger operating performance from existing properties as well as higher interest income.

CLINT’s 1H 2026 distribution per unit (DPU) increased 13% YoY in Indian Rupee (INR) terms. However, because of the depreciation of the INR during this period, DPU increased by 1.0% YoY in SGD terms to 4.00 Singapore cents. This includes the advanced distribution of 1.44 Singapore cents for the period from 1 January to 4 March 2026, which was paid to unitholders on 10 April 2026, following CLINT’s private placement on 24 February 2026.

With the record date on Tuesday, 18 August 2026, CLINT’s unitholders will receive the DPU of 2.56 Singapore cents for the period from 5 March to 30 June 2026 on Wednesday, 23 September 2026. On an annualised basis, CLINT’s 1H 2026 DPU translates to a distribution yield of 7.9% based on the closing price of S$1.02 as at 30 June 2026.

1H 2026 total property income increased by 3% YoY to INR 9.9 billion and net property income (NPI) increased 6% YoY to INR 7.8 billion. CLINT’s NPI margin improved YoY from 76.1% to 78.1%, driven by proactive portfolio management to enhance operational efficiency and leasing performance

CLINT’s portfolio includes eight world-class IT business parks, three industrial facilities, one logistics park and four data centre developments in India.