- Eligible borrowers: Any corporate or body corporate as well as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
- Recognised investors: Any investor from a Financial Action Task Force (FATF) compliant jurisdiction.
- Maturity: Minimum maturity period of 5 years.
- All-in-cost: All in cost should be commensurate with prevailing market conditions.
- Amount: As per extant ECB policy.
- End-uses: No end-use restrictions except for a negative list.
|Sr. No.||ECB parameter||Framework|
|1.||Eligibility of borrowers||Any corporate or body corporate is eligible to issue Rupee denominated bonds overseas. 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 listed on exchanges as per host country regulations.|
|3.||Recognised investors||Any investor from a FATF compliant jurisdiction. Banks incorporated in India will not have access to these bonds in any manner whatsoever. Indian banks, however, can act as arranger and underwriter. In case of underwriting, holding of Indian banks cannot be more than 5 per cent of the issue size after 6 months of issue. Further, such holding shall be subject to applicable prudential norms.|
|4.||Maturity||Minimum maturity period of 5 years. The call and put option, if any, shall not be exercisable prior to completion of minimum maturity.|
|5.||All-in-cost||The all-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: |
|7.||Amount||Under the automatic route the amount will be equivalent of USD 750 million per annum. Cases beyond this limit will require prior approval of the Reserve Bank.|
|8.||Conversion rate||The foreign currency - Rupee conversion will be at the market rate on the date of settlement for the purpose of transactions undertaken for issue and servicing of the bonds.|
|9.||Hedging||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||The leverage ratio for the borrowing by financial institutions will be as per the prudential norms, if any, prescribed by the sectorial regulator concerned.|