GUIDELINES ON POLICIES AND PROCEDURES FOR EXTERNAL COMMERCIAL BORROWINGS FOR 1997-98

LONG-TERM BORROWERS

1. ECB of ten years average maturity and above will outside the ECB ceiling, though MOF's prior approval for such borrowings would continue to be applicable. The extent of debt under this window will be reviewed by the Government periodically.
2. Corporate borrowers able to raise long-term resources with an average maturity of 10 years and 20 years will be allowed to use ECB proceeds without the normal end-use restrictions upto USD 100 million for issue of 10 years and above upto 20 years and USD 200 million for issue of 20 years and above. These amounts will be available for general corporate objectives excluding investments in stock markets or in real estate.
3. To be eligible for this purpose, the debt instrument should not include any "put" or "call" options potentially reducing the stated maturities.

Guidelines on Policies and Procedures for External Commercial Borrowings 1997-98

[ECB Policy] [Average Maturities for ECB] [USD 3 Million Scheme][Exporters/Foreign Exchange Earners][ Infrastructure Projects][Long-Term Borrowers][On Lendings by DFIs and Other Financial Intermediaries][End-Use Requirements][Proceeds from Bonds , FRNs & Syndicated Loan][ECB Entitlement for New Projects][Interest rate for Project Financing][Other Term and Conditions][Security][Exemption from Withholdings Tax][Approval under FERA][Short-Term Loan from RBI][Validity of Approval][Pre-Payment of ECB][Refinancing the Existing Foreign Currency Loan][Liability Management][Procedure for Seeking ecb Approval][Review][Hedging of Loan Exposures][Format for providing information to Department of Economic Affairs, Ministry of Finance, for seeking ECB Approval]