External Commercial Borrowings (ECB) Policy - Take-out Finance

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..... ks is invited to the A.P. (DIR Series) Circular No. 5 dated August 1, 2005 and A.P (DIR Series) Circular No. 39 dated March 29, 2010 relating to the External Commercial Borrowings (ECB). 2. As per the extant norms, refinancing of domestic Rupee loans with ECB is not permitted. However, keeping in view the special funding needs of the infrastructure sector, it has been decided to review the ECB .....

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..... a minimum average maturity period of seven years. (iii) The domestic bank financing the infrastructure project should comply with the extant prudential norms relating to take-out financing. (iv) The fee payable, if any, to the overseas lender until the take-out shall not exceed 100 bps per annum. (v) On take-out, the residual loan agreed to be taken- out by the overseas lender would be con .....

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..... rity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged. 4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without pr .....

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