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CapitaLand India Trust (CLINT) is shifting a portion of its outstanding foreign-currency debt from Singapore dollars to Indian rupees as the Indian currency has weakened over the past 12–18 months. The Singapore-listed real estate investment trust is adopting the move as a natural hedge against currency fluctuations, aligning a larger share of its borrowings with its Indian assets and operating cash flows. CLINT has been increasing its onshore rupee borrowing as part of its funding strategy, with Indian rupee-denominated debt expected to account for a larger proportion of its overall debt following the latest refinancing plans.
CapitaLand India Trust (CLINT) is shifting part of its outstanding Singapore dollar-denominated debt into Indian rupee borrowings as the Indian currency has weakened significantly over the past 12–18 months. The move is intended to reduce the trust’s exposure to foreign-exchange fluctuations by creating a closer currency match between its debt obligations and its Indian assets and operating cash flows.
The change forms part of CLINT’s broader financing strategy as it increases its use of onshore Indian rupee debt. The trust has been raising a larger proportion of its borrowings in India, reducing its reliance on foreign-currency debt for assets that generate revenues primarily in rupees.
CLINT’s latest financial disclosures indicate that onshore INR debt, including its proportionate share of debt in joint venture entities, is expected to account for about 29% of its total debt once a new term loan is fully drawn. This compares with 23% as of March 31, 2026.
The shift comes amid a period of increased currency volatility. A weaker rupee raises the rupee value of foreign-currency liabilities when they are translated into the Indian currency, increasing the financial impact of exchange-rate movements. Increasing the proportion of rupee-denominated borrowings can help CLINT reduce this mismatch.
The strategy is particularly relevant to the trust’s Indian property portfolio, which includes office, industrial and data centre assets across major markets. As the portfolio expands, the currency composition of its debt becomes an important consideration in managing financing and foreign-exchange exposure.
CLINT recorded continued growth in its Indian operations during the first half of 2026. Its distribution per unit increased 13% year-on-year in Indian rupee terms during the period. However, the increase was lower when measured in Singapore dollars because of the depreciation of the rupee against the Singapore dollar.
The trust has also been working to manage its financing costs through changes in its borrowing profile. Finance costs declined by INR 100.2 million, or 3%, during the first half of 2026, alongside a reduction in borrowings.
CLINT had earlier indicated plans to increase rupee-denominated borrowing as part of its efforts to manage foreign-exchange exposure and financing costs. The approach allows the trust to align a greater portion of its liabilities with the currency in which its Indian properties generate income.
The move comes as CLINT continues to expand its domestic asset base and financing requirements. By increasing the share of INR debt, the trust is seeking to limit the effect of currency movements on its financial position while maintaining funding flexibility for its Indian operations.
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