RBI opens bank lending to REITs, cuts borrowing costs 50-70 bps from October 1
RBI's new framework allows banks to lend directly to SEBI-registered REITs and InvITs, capped at 49% of asset value. Effective October 1, the move could lower borrowing costs by 50-70 bps, benefiting mall-owner Nexus Select Trust and office REITs like Embassy, Brookfield, and Mindspace. Cheaper long-term funds support retail real estate expansion.
RBI now allows banks to lend directly to SEBI-registered REITs and InvITs, capped at 49% of asset value, effective October 1. Lower borrowing costs (50-70 bps) benefit mall-owning Nexus Select Trust and office REITs, supporting retail real estate expansion.