Regulatory Alerts2009-01-09
Added
REITS: Treatment of Refinancing Under The Aggregate Leverage Limit
The Monetary Authority of Singapore clarifies that refinancing existing debt does not constitute incurring additional borrowings for the purpose of the aggregate leverage limit. REITs are permitted to raise refinancing funds ahead of maturity without counting them toward the leverage cap, provided the proceeds are held in a separate trust account solely for repaying the maturing debt. Additionally, REIT managers must report property values, borrowings, and aggregate leverage to the Authority whenever a revaluation exercise is conducted.
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