Latest news with #HoldCo
Time of India
2 days ago
- Business
- Time of India
Sebi board clears measures to enhance ease of doing business for REITs, InvITs, merchant bankers
NEW DELHI: Markets regulator Sebi board on Wednesday approved measures to enhance the ease of doing business for the activities of Real Estate Investment Trusts ( REITs ) and Infrastructure Investment Trusts ( InvITs ). Also, Sebi has permitted merchant bankers to carry out activities falling outside the purview of the regulator under the same firm. This is subject to certain conditions. Regarding approved regulatory framework for REITs and InvITs, Sebi said that the related parties of the REIT/InvIT and the related parties of the sponsor, investment manager/manager, and project manager would not be considered as "public" unless such related parties are Qualified Institutional Buyers (QIBs). Moreover, they would always be excluded from the "public" category irrespective of their status as QIBs. The board approved several matters that will result in amendments to the REITs as well as and InvITs Regulations 2014. Prior to this amendment, any units held by the related parties of the sponsor, investment manager/manager, and project manager were not counted towards units held by the "public." The amendment now facilitates the classification of units held by the related parties of these entities who are QIBs as public, Sebi said in a statement issued after the conclusion of the board meeting. In another significant move, the board approved an amendment allowing the negative net distributable cash flows generated by a HoldCo (holding company) on its own to be adjusted against the cash received from Special Purpose Vehicles (SPVs) to arrive at the cash flows for distribution by such HoldCo to the REIT/InvIT. This is subject to appropriate disclosures to the unit holders. Earlier, a HoldCo was required to distribute 100 per cent of the cash flows received from the underlying SPVs to the REIT/InvIT. This amendment enables a HoldCo to offset its own negative cash flows before distributing the net amount to the REIT/InvIT. Further, the board approved the alignment of timelines for submission of various reports -- including quarterly reports to be submitted to stock exchanges, trustees, and the board of the investment manager, as well as valuation reports -- with the timelines for submission of financial results. Earlier, different timelines were prescribed for the submission of these reports. Given that quarterly reports included disclosures of financial information and that certain statements in the financial results are derived from valuation reports, it was represented that synchronizing the timelines would enhance efficiency. This has now been addressed through the amendment. Additionally, the board approved the reduction of the minimum allotment lot in the primary market for privately placed InvITs to Rs 25 lakh, aligning it with the trading lot size in the secondary market. Prior to this, the minimum allotment lot in the primary market for privately placed InvITs was Rs 1 crore or Rs 25 crore, depending on the asset mix. However, in an earlier round of reforms, the trading lot size in the secondary market had already been reduced to Rs 25 lakh, irrespective of the asset mix. Accordingly, this amendment introduces a uniform minimum allotment size of Rs 25 lakh in the primary market for all privately placed InvITs, harmonizing it with the secondary market norms. On merchant bankers, the regulator noted that Merchant Bankers Regulations, 1992 have been notified by it in order to regulate merchant banking activities. It has been observed that the merchant bankers (MBs) also undertake significant amount of activities that are not with in the purview of Sebi. In view of the possible risks associated with unregulated activities being carried out by Sebi registered entity, the board in its meeting held in December 2024 had approved that the non-regulated activities be hived off to a separate legal entity. However, post internal review and feedback obtained from market participants, the board has now relaxed the requirement of hiving off and has approved the several amendments to the MB Regulations "MBs shall be permitted to carry out activities that are not regulated by Sebi in the following respects: MB may undertake activities, which are within the purview of any other Financial Sector Regulator (FSR), provided it shall comply with the regulatory framework, if any, as may be specified by the respective FSR," Sebi said. MB may also undertake activities, which are not within the purview of Sebi or any other FSR, provided they are fee-based, non-fund based activities and pertain to financial services sector, it added.
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Sebi clears reforms to ease business for REITs, InvIT structures, bankers
Markets regulator Sebi board on Wednesday approved measures to enhance the ease of doing business for the activities of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Also, Sebi has permitted merchant bankers to carry out activities falling outside the purview of the regulator under the same firm. This is subject to certain conditions. Regarding approved regulatory framework for REITs and InvITs, Sebi said that the related parties of the REIT/InvIT and the related parties of the sponsor, investment manager/manager, and project manager would not be considered as "public" unless such related parties are Qualified Institutional Buyers (QIBs). Moreover, they would always be excluded from the "public" category irrespective of their status as QIBs. The board approved several matters that will result in amendments to the REITs as well as and InvITs Regulations 2014. Prior to this amendment, any units held by the related parties of the sponsor, investment manager/manager, and project manager were not counted towards units held by the "public." The amendment now facilitates the classification of units held by the related parties of these entities who are QIBs as public, Sebi said in a statement issued after the conclusion of the board meeting. In another significant move, the board approved an amendment allowing the negative net distributable cash flows generated by a HoldCo (holding company) on its own to be adjusted against the cash received from Special Purpose Vehicles (SPVs) to arrive at the cash flows for distribution by such HoldCo to the REIT/InvIT. This is subject to appropriate disclosures to the unit holders. Earlier, a HoldCo was required to distribute 100 per cent of the cash flows received from the underlying SPVs to the REIT/InvIT. This amendment enables a HoldCo to offset its own negative cash flows before distributing the net amount to the REIT/InvIT. Further, the board approved the alignment of timelines for submission of various reports -- including quarterly reports to be submitted to stock exchanges, trustees, and the board of the investment manager, as well as valuation reports -- with the timelines for submission of financial results. Earlier, different timelines were prescribed for the submission of these reports. Given that quarterly reports included disclosures of financial information and that certain statements in the financial results are derived from valuation reports, it was represented that synchronizing the timelines would enhance efficiency. This has now been addressed through the amendment. Additionally, the board approved the reduction of the minimum allotment lot in the primary market for privately placed InvITs to Rs 25 lakh, aligning it with the trading lot size in the secondary market. Prior to this, the minimum allotment lot in the primary market for privately placed InvITs was Rs 1 crore or Rs 25 crore, depending on the asset mix. However, in an earlier round of reforms, the trading lot size in the secondary market had already been reduced to Rs 25 lakh, irrespective of the asset mix. Accordingly, this amendment introduces a uniform minimum allotment size of Rs 25 lakh in the primary market for all privately placed InvITs, harmonizing it with the secondary market norms. On merchant bankers, the regulator noted that Merchant Bankers Regulations, 1992 have been notified by it in order to regulate merchant banking activities. It has been observed that the merchant bankers (MBs) also undertake significant amount of activities that are not with in the purview of Sebi. In view of the possible risks associated with unregulated activities being carried out by Sebi registered entity, the board in its meeting held in December 2024 had approved that the non-regulated activities be hived off to a separate legal entity. However, post internal review and feedback obtained from market participants, the board has now relaxed the requirement of hiving off and has approved the several amendments to the MB Regulations "MBs shall be permitted to carry out activities that are not regulated by Sebi in the following respects: MB may undertake activities, which are within the purview of any other Financial Sector Regulator (FSR), provided it shall comply with the regulatory framework, if any, as may be specified by the respective FSR," Sebi said. MB may also undertake activities, which are not within the purview of Sebi or any other FSR, provided they are fee-based, non-fund based activities and pertain to financial services sector, it added.
Yahoo
07-04-2025
- Business
- Yahoo
Woodside Energy Sells 40% Stake In Louisiana LNG Project For $5.7 Billion
On Sunday, Woodside Energy Group (NYSE:WDS) inked a binding deal to sell a 40% stake in Louisiana LNG Infrastructure LLC to Stonepeak. As per the deal, Stonepeak plans to invest $5.7 billion in the development of the three-train, 16.5 mtpa foundation phase of Louisiana LNG. The investment is expected to cover 75% of capital expenditure in 2025 and 2026, with development starting on January 1, 2025. This significantly eases Woodside's capex burden, improves project economics, and strengthens cash flow ahead of revenue from its Scarborough Energy Project in Australia—enhancing capacity for shareholder returns. The remaining 60% stake will be retained by Louisiana LNG LLC (HoldCo), operated by Woodside. Meanwhile, InfraCo, managed by Woodside, holds the EPC agreement with Bechtel and, pending a final investment decision, will own and build the liquefaction infrastructure and shared facilities. Under this arrangement, HoldCo will manage gas supply and LNG offtake. Due to the accelerated nature of their capital contributions, Stonepeak's total investment of $5.7 billion will be less than their nominal 40% ownership stake in InfraCo after adjusting for the time value of money. HoldCo will cover the additional capital required if there are any cost overruns. This arrangement offers Stonepeak cost certainty while allowing HoldCo to capture potential capital expenditure savings. The projected forward cost for the foundation phase of the Louisiana LNG project, starting from December 2024, is estimated at $900–$960 per tonne. The transaction is expected to close in the second quarter of 2025, pending customary conditions precedent. Post-completion, Stonepeak is expected to make a payment of approximately $2 billion to cover its share of capital expenditures incurred from the effective date to closing. James Wyper, Senior Managing Director and Head of US Private Equity at Stonepeak, said, "The Project represents a compelling opportunity to invest in a newbuild LNG export facility nearing FID approval with an attractive risk-return profile and best-in-class partners in both Bechtel and Woodside to construct and operate the asset." Price Action: WDS shares are down 0.82% at $11.54 at the last check Monday. Read Next:Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Woodside Energy Sells 40% Stake In Louisiana LNG Project For $5.7 Billion originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
