Finance · Financial Markets
From the perspective of an infrastructure developer (the Sponsor), the most significant rationale for setting up an Infrastructure Investment Trust (InvIT) is to address which of the following common challenges in the infrastructure sector?
- 1Obtain a full exemption from all corporate taxes and government levies.
- 2De-leverage its balance sheet and unlock capital from operational, long-gestation assets to reinvest in new projects.✓
- 3Gain access to preferential interest rates from public sector banks.
- 4Directly execute new, high-risk, greenfield projects.
Correct answer
De-leverage its balance sheet and unlock capital from operational, long-gestation assets to reinvest in new projects.
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