External Commercial Borrowings (ECB) Policy - Issuance of Rupee denominated bonds overseas

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..... f Authorized Dealer Category - I (AD Category - I) banks is invited to the provisions contained in A.P. (DIR Series) Circular No. 5 dated August 01, 2005 as amended from time to time on External Commercial Borrowings (ECB). 2. In order to facilitate Rupee denominated borrowing from overseas, it has been decided to put in place a framework for issuance of Rupee denominated bonds overseas withi .....

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..... including obtaining Loan Registration Number (LRN) through submission of Form 83 where type of ECB is to be specifically mentioned as borrowing through issuance of Rupee denominated bonds overseas), parking of bond proceeds, security / guarantee for the borrowings, conversion into equity, corporates under investigation, etc., not appearing in the Annex will be applicable for borrowing by issuance .....

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..... erseas. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) coming under the regulatory jurisdiction of the Securities and Exchange Board of India are also eligible. 2. Type of instrument Only plain vanilla bonds issued in a Financial Action Task Force (FATF) compliant financial centres; either placed privately or .....

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..... in-cost of such borrowings should be commensurate with prevailing market conditions. This will be subject to review based on the experience gained. 6. End-uses The proceeds can be used for all purposes except for the following: Real estate activities other than for development of integrated township / affordable housing projects; .....

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..... The overseas investors will be eligible to hedge their exposure in Rupee through permitted derivative products with AD Category - I banks in India. The investors can also access the domestic market through branches / subsidiaries of Indian banks abroad or branches of foreign bank with Indian presence on a back to back basis. 10. Leverage T .....

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