This RBI rule change could bring cheaper, longer money to REITs

“The Indian REITs Association welcomes the Reserve Bank of India’s decision to permit banks to lend directly to Real Estate Investment Trusts. This landmark move strengthens the financial framework for REITs and supports their long-term growth. Direct access to bank lending provides REITs with a stable, long-term source of funding and expands fund-raising avenues for an asset class built on long-duration, income-generating real estate.The ability to borrow at the REIT level is expected to improve financing efficiency, as REITs currently raise debt through market instruments with shorter tenors of 3–5 years. With banks now permitted to lend directly, REITs will be able to access long-term funding, enhancing financial flexibility and supporting portfolio expansion as well as the institutionalisation of India’s commercial real estate sector,” the Indian REITs Association said.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.