RBI raises ECB borrowing limit to $1 billion
pre-market1 source ↓written by the desknot a recommendation
- borrowing cap
- $1 billion
- $750 million
- through ECBs
- $61 billion
- in FY24
- $48 billion
- with shorter maturities
- $150 million
The Reserve Bank of India has revised External Commercial Borrowings (ECB) guidelines, increasing the borrowing cap to $1 billion from $750 million. Eligible borrowers can now raise ECBs up to 300% of net worth based on the latest audited balance sheet. This change comes as Indian companies raised a record $61 billion through ECBs in FY25, up from $48 billion in FY24. 📈
The new norms aim to support growing ECB volumes and provide manufacturers with more flexible financing options. The minimum average maturity period for funds is set at three years, while manufacturers can raise up to $150 million with shorter maturities.
Not investment advice. For informational purposes only.