RBI notifies framework for issuance of Rupee denominated bonds overseas
In order to facilitate Rupee denominated borrowing from overseas, it has been decided by RBI to put in place a framework for issuance of Rupee denominated bonds overseas within the overarching ECB policy. The broad contours of the framework are as follows:
· 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.
All other provisions of extant ECB guidelines regarding reporting requirements (including obtaining Loan Registration Number (LRN) through submission of Form 83 where type of ECB is to be specifically mentioned as borrowing through issuance of Rupee denominated bonds overseas), parking of bond proceeds, security / guarantee for the borrowings, conversion into equity, corporates under investigation, etc., not appearing in below guidelines will be applicable for borrowing by issuance of Rupee denominated bonds overseas.
The detailed guidelines for issuance of Rupee denominated bonds overseas are mentioned below:
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