The Monetary Authority of Singapore (MAS) has released a consultation paper that proposes to simplify the leverage limits for REITs listed in the country.
Under proposals stipulated in the paper, a Singapore Exchange (SGX)-listed REIT will be subjected to a minimum interest coverage ratio (ICR) threshold of 1.5 times and an aggregate leverage limit of 50%.
Currently, a REIT is required to have an ICR of at least 2.5 times if it intends to increase its aggregate leverage from 45% to 50%.
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