Revision in Average Maturity Period of ECB

a) ECB up to USD 20 million or equivalent in a financial year with minimum average maturity of three years; and

b) ECB above USD 20 million and up to USD 750 million or equivalent with minimum average maturity of five years.

 This notification came consequent to the enhancement in ECB limits by RBI for eligible borrowers under the automatic route up to USD 750 million or equivalent per financial year per borrower for permissible end-uses under the automatic route vide A.P. (DIR Series) Circular No. 27 dated September 23, 2011.

 It is also clarified that the eligible borrowers under the automatic route can raise Foreign Currency Convertible Bonds (FCCBs) up to USD 750 million or equivalent per financial year for permissible end-uses.

 Further the Corporate in specified service sectors, viz. hotel, hospital and software, can raise FCCBs up to USD 200 million or equivalent for permissible end-uses during a financial year subject to the condition that the proceeds of the ECB should not be used for acquisition of land.

 And the ECB / FCCB availed of for the purpose of refinancing the existing outstanding FCCB will be reckoned as part of the limit of USD 750 million available under the automatic route.