Securities and Exchange Board of India (SEBI) has relaxed borrowing norms for Infrastructure Investment Trusts (InvITs) with leverage exceeding 49% of asset value. This move aims to enhance financing flexibility for infrastructure projects and improve funding access across the sector.
InvITs are now permitted to raise fresh borrowings above the 49% leverage threshold for capital expenditure aimed at enhancing asset performance or expanding project capacity. Additionally, they can utilize additional debt for major maintenance expenses related to road infrastructure projects.
The circular specifies that major maintenance expenses include non-routine maintenance obligations as per concession agreements. SEBI clarified that refinancing of existing debt by InvITs, special purpose vehicles, and holding companies is allowed under specified conditions.
The revised framework, effective immediately, provides operational flexibility to InvITs looking to strengthen infrastructure assets and undertake expansion projects. These changes follow amendments made to SEBI InvIT Regulations on April 17, 2026, expanding the permitted use of borrowings beyond the leverage ceiling.
