External Commercial Borrowings

·         Recognized Lenders and recognized borrower

·         Refinancing

·         Amount and Maturity

·         Debt Servicing

·         All in Cost ceiling

·         End use permitted/ not permitted end use

·         Guarantee Security

·         Parking of ECB Proceeds

External Commercial Borrowings

External Commercial Borrowings (ECB) refer to commercial loans in the form of bank loans, buyers‘ credit, suppliers‘ credit, securitized instruments (e.g. floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares) availed of from non-resident lenders with a minimum average maturity of 3 years.

ECB can be accessed under two routes, viz., (i) Automatic Route and (ii) Approval Route. Automatic route can be availed in case the eligibility criteria for automatic route are met. In case of doubt as regards eligibility to access the Automatic Route, applicants may take recourse to the Approval Route.