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Foreign Loan Facilitators, FCNR-B, Overseas Rupee Bond Loan Consultants  - India

Loan Financing in India

Overseas Rupee Bonds

(announced on 23/08/2012)

 Export-Import, Foreign Curency Loan Consultant

(for export import as well as Domestic Loan Requirement)

Overseas Rupee Bond Loan Application

Purpose : To lower borrowing cost. Top rated companies borrow at 9%-11% excluding hedging costs.
   

Modalities:

The bonds to be guaranteed from higher rated offshore entities.
Foreign investors will be allowed to invest upto US$ 5 billion in these bonds & the overall corporate bond limit shall remain at US$45 billion.
The minimum maturity period of the bonds have been reduced from 7 years to 3 years.

Banks are excluded from guaranteeing these debts

   
Beneficiaries: Mainly foreign companies having Indian presence. Telecom, Energy sectors.
   
New ECB Measures:

Infrastructure & Manufacturing companies looking to refinance rupee debts can tap overseas loan upto 75% of their average forex earnings over the 3 previous financial years from earlier 50%. For detailed ECB Guideline, click- Master circular1, Circular2 , More on ECB

SIDBI, NHB, Housing Finance Companies  can tap overseas funds for onward lending to small enterprises.

  Line of Credit    SBLC
Latest

The Reserve Bank of India () has permitted Indian companies to use money, raised by issuing tax-free non-convertible bonds to overseas investors, in projects.

The resident entities and companies, allowed by the government to issue tax-free, secured, redeemable, non-convertible bonds in rupees to person resident outside India can use such borrowed funds for lending or re-lending, said RBI.

The central bank said this money could be parked in deposits with banks in India pending utilisation by them for permissible end-uses.

Earlier, RBI had imposed restrictions on usage of funds by person resident in India borrowed in rupees from a person resident outside India. They could not use such borrowed funds for any investment in any company or partnership firm or proprietorship concern or any entity, or for re-lending.
 
 
10/09/2013

Essar Power completed an 11-year Rupee denominated bond offering, which will be listed on the Bombay Stock Exchange Essar Power Ltd., amongst India’s leading private sector power producers and a subsidiary of London-listed Essar Energy, today said that it has completed an 11-year, Rs. 1,000 crore ($147 million), Rupee denominated bond offering.

The new bonds issued will be listed on the Bombay Stock Exchange and will be repaid from 2017 to 2024.

During FY2013,Essar Power completed a number of coal-fired power projects and now has 3,910 MW of operational capacity. Work is progressing on further projects intended to take Essar Power’s operational portfolio to 6,700MW.

Mr Deepak Maheshwari, Chief Financial Officer, Essar Energy said: “This further Rupee bond issue will allow our power business to benefit from longer debt maturity time frames and lower interest rates compared to our existing debt facilities. Essar Energy is well positioned to capitalize on the growing demand for power in India.”

 

   
 

 

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