External Commercial Borrowings (ECB):

External commercial borrowings are loans in India made by non-resident lenders in foreign currency/ Rupees to Indian borrowers. Indian corporates eligible to receive foreign direct investment can borrow money in form of commercial bank loans, buyers' credit, suppliers' credit, financial lease, securitized instruments such as floating rate and fixed rate bonds etc., credit from overseas lenders . RBI from time to time issue directions / instructions covered under Master Direction on External Commercial Borrowings, as amended from time to time.

Axis Bank is one of the leading banks appointed by the customers as “Designated Authorized Bank(AD)” to deal any complex ECB proposals. Our strong Debt Capital Markets /Syndication team will assist in arranging listing /private placement of overseas bond issuances.

Various services offered by us

1. Pre transaction advisory on RBI regulations
2. Assistance in completion of documentation
3. Timely arrange approvals (Loan Registration No)
4. Issuance of No Objection Certificate for creation of charge on assets in India as security for ECB favoring the overseas lender
5. Approving changes in parameters of ECB complying the guidelines
6. Hedging services for drawdown and repayment of loans in all major currencies
7. Assist in submission of monthly returns to RBI
8. Trusteeship services – Safe custody of charge documents in India on behalf of overseas lenders
9. Funding through our overseas /GIFT city branches
10. Offer escrow/debt service reserve accounts.

The six parameters of ECB framework of RBI are :

i) Eligible borrower

ii) Recognized lender

iii) Eligible Amount

iv) Minimum Average Maturity or tenor

v) All in cost and

vi) Permissible end uses of loan . Cases falling within these parameters can be processed under automatic route. Cases not complying the parameters may be applied to RBI for specific approval.

https://www.axisbank.com/docs/default-source/default-document-library/service-charges-for-foreign-exchange-transactions-15092020.pdf

For documentation – Please reach out to your nearest branch or contact your relationship manager for further information.

Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion.