How will IFRS 16 affect the tower industry?

What will be the effect of the new international lease accounting standard IFRS 16 Leases on tower carve outs and sale and leaseback deals?

Read this article to learn:

  • What the tower industry needs to know about the accounting standards change
  • The impact of IFRS 16 Leases on all the drivers for tower monetisation
  • How will IFRS 16 Leases affect tower carve outs versus sale and leasebacks?
  • Why the contractual terms concerning break clauses and renewals will be even more critical
  • Will the conversion of Master Lease Agreements to Master Service Agreements enable MNOs to avoid bringing towerco fees onto the balance sheet?

With effect from 1 January 2019, new international lease accounting rules will remove the distinction between finance leases and operating leases, requiring conventional tower leases to be brought on to MNO balance sheets. At first glance, this appears to compromise the sale and leaseback of towers as an option for MNOs seeking to delever, but…

Towercos and MNOs are entitled to a free subscription. Please login with your usual credentials or apply for a new account.

This content is for Subscribers only

To read the full article either login below or follow the link to subscribe.

Log In Subscribe

Announcing an enhanced TowerXchange Journal – subscribe now!

Our new improved offering will allow you to access the insight and analysis you have come to rely on from TowerXchange – but in a format that suits you.

We would love you to continue to receive the TowerXchange Journal by subscribing, and to contribute to the knowledge sharing and information resource we have built up in the form of over 2.5mn words of research and almost 1,000 CXO interviews. An individual subscription costs GBP£2,500 per year, with corporate subscriptions priced according to scale.

Subscribe now