Investment trust borrowing limits require ratings, unitholder approval and enhanced safeguards for higher InvIT debt exposure. Listed Investment Trusts may issue listed debt securities and must comply with consolidated borrowing and deferred-payment limits, net of cash and cash ... Summary
Investment trust borrowing limits require ratings, unitholder approval and enhanced safeguards for higher InvIT debt exposure.
Listed Investment Trusts may issue listed debt securities and must comply with consolidated borrowing and deferred-payment limits, net of cash and cash equivalents. Further borrowings exceeding 25% of asset value require a credit rating and unitholder approval. InvIT borrowings above 49% additionally require an AAA or equivalent rating, use solely for infrastructure acquisition or development, a record of six continuous post-listing distributions, and prior unitholder approval. Market-driven breaches must be rectified within six months.
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