Banking · Acquisition Finance Framework
Under the Acquisition Finance framework effective July 1, 2026, which of the following combinations correctly reflects the operational mandate for loans extended to subsidiaries or Special Purpose Vehicles (SPVs), the specific prohibition regarding the relationship between transaction parties, and the regulatory protocol for refinancing such acquisitions?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Compulsory corporate guarantees for subsidiaries/SPVs, strict prohibition against executing related-party acquisitions, and refinancing permitted only after the completion of the acquisition.✓
- 2Mandatory bank guarantees for SPVs, prohibition on cross-border acquisitions only, and refinancing permitted during the 12-month control establishment period.
- 3Compulsory personal guarantees from promoters, strict prohibition on hostile takeovers, and refinancing allowed only for 75% of the total acquisition value.
- 4Optional corporate guarantees for SPVs, restriction on acquisitions of financial subsidiaries only, and refinancing permitted as bridge finance during the due diligence phase.
Correct answer
Compulsory corporate guarantees for subsidiaries/SPVs, strict prohibition against executing related-party acquisitions, and refinancing permitted only after the completion of the acquisition.
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