4th June 2024 (11 Topics)
1
Jun
3
Jun
4
Jun
5
Jun
6
Jun
7
Jun
8
Jun
10
Jun
11
Jun
12
Jun
13
Jun
14
Jun
15
Jun
17
Jun
18
Jun
19
Jun
20
Jun
21
Jun
22
Jun
24
Jun
25
Jun
26
Jun
27
Jun
28
Jun
29
Jun
External Commercial Borrowings (ECBs)
Context
Shriram Finance Ltd. (private non-banking financial company (NBFC)), has recently announced the raising of funds totaling $425 million and EUR 40 million through a syndicated term loan transaction.
The three-year external commercial borrowing facility was structured as a social loan.
About External Commercial Borrowings (ECBs)
- ECBs are commercial loans obtained by eligible resident entities from recognized non-resident entities. These loans serve as a source of funding for various business activities.
- Parameters: ECBs must adhere to specific parameters, including minimum maturity periods, permitted and non-permitted end uses, maximum all-in-cost ceiling, and other regulatory requirements.
- Routes for ECBs: ECBs can be raised through either the automatic route or the approval route, depending on certain criteria.
- Approval Route: Under the approval route, prospective borrowers submit their requests to the Reserve Bank of India (RBI) through an Authorized Dealer (AD) category-I Bank.
More Articles
Courses
Study
Notes
Home
Resources
More
