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SEBI Allows InvIT Borrowings Above 49% for Capital Expansion & Debt Refinancing
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Supreme Court of Indiacorporatereal_estate

SEBI Allows InvIT Borrowings Above 49% for Capital Expansion & Debt Refinancing

May 17, 2026

In a significant policy shift, SEBI has clarified that Infrastructure Investment Trusts (InvITs) can now exceed 49% loan-to-value (LTV) ratios for capital expenditure and debt refinancing. This circular is expected to enhance financial flexibility for infrastructure trusts.

SEBI Allows InvIT Borrowings Above 49% for Capital Expansion & Debt Refinancing

The revision in this regulation reflects an effort to promote the growth and sustainability of infrastructure investments in India. By allowing higher leverage, SEBI is facilitating a more significant infusion of capital into the infrastructure sector, which is crucial for India’s economic development.

Legal and financial advisors working with InvITs need to adapt to these changes by reassessing financial strategies and debt management practices to optimize funding options under the new regime.

Citations

  • SEBI Circular (2026) SEBI Rep 20
Source:Supreme Court of India
Practice Areas:corporatereal_estate

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