The Securities and Exchange Board of India has issued a circular specifying the permitted use of fresh borrowings by Infrastructure Investment Trusts whose net borrowings exceed 49 percent of the value of their assets. Following the April 17, 2026 amendment to the InvIT framework, higher leverage may now be used for capital expenditure to enhance asset performance or augment capacity, for specified major maintenance on road projects, and for certain refinancing of debt. For road assets, major maintenance means non-routine maintenance expenditure required under the concession agreement for projects in the Roads and bridges infrastructure sub-sector. Refinancing is allowed at the InvIT, special purpose vehicle or holdco level only where the original debt was used for purposes permitted under the InvIT regulations, and only the principal amount may be refinanced, excluding accrued interest and any charges or fees. The circular took effect immediately.
Securities & Exchange Board of India 2026-05-15
Securities and Exchange Board of India permits InvIT borrowings above 49 percent of asset value for capex road maintenance and debt refinancing
The Securities and Exchange Board of India has issued a circular specifying the permitted use of fresh borrowings by Infrastructure Investment Trusts whose net borrowings exceed 49 percent of asset value. Higher leverage may now be used for capital expenditure to enhance asset performance or capacity, specified major maintenance on road projects, and certain refinancing of principal-only debt originally raised for permitted purposes at the InvIT, special purpose vehicle or holding company level.