REIT / InvIT borrowing headroom
Work out borrowing as a share of trust assets, the cap that applies and the headroom left.
Source: Reg 101, IFSCA (Fund Management) Regulations, 2025.
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40.0% of assets · cap 49%
Headroom: USD 45.0 million.
Above 49% an InvIT also needs the funds to be used for acquiring or developing infrastructure projects.
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Worked example
An InvIT holds assets worth USD 800 million and has net borrowings of USD 420 million. It does not have the AAA rating, distributions and unitholder approval in place.
What to notice: Without all three conditions the InvIT cap stays at 49% of asset value.
Result
14 Oct 2026Answer the questions to see your result here.
Outcome
Within the borrowing cap
40.0% of assets · cap 49%
Headroom: USD 45.0 million.
Above 49% an InvIT also needs the funds to be used for acquiring or developing infrastructure projects.
In simple terms
40.0% of assets · cap 49%. Headroom: USD 45.0 million. This is an indicative check against the provision named above. If the result is close to a limit or your facts are unusual, have it reviewed.
The figures
| Trust | InvIT |
|---|---|
| Value of trust assets | USD 500 million |
| Net borrowings | USD 200 million |
| Borrowings as a share of assets | 40.0% |
| Cap that applies | 49% = USD 245.0 million |
| Headroom left | USD 45.0 million |
How this is worked out
- REIT: borrowing cap of 49% of the value of trust assets.
- InvIT: 49%, or 70% with a AAA rating, 6 distributions and unitholder approval in place.
- Above 49%, an InvIT also needs the funds to be used for acquiring or developing infrastructure projects.
- Headroom = cap × value of trust assets − net borrowings.
Regulatory source
Reg 101Relevant provisions
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Company Secretary & Compliance Officer, Global Horizons Capital Advisors (IFSC) Private Limited · FCS · 13+ years in compliance and governance
A tool points the way. CS Prashant Kumar checks your facts, structure and documents, then gives you a written view and a clear path to registration and compliance.
Each calculator gives an indicative result based on the figures entered and the provision named on it. It is not legal or professional advice. Check the full provision and your own facts, including any extension or relaxation granted.
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CS Prashant Kumar
Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker
Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)
Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.