Notification on ECB Policy – Review of Minimum Average Maturity and Hedging Provisions

Review of Minimum Average Maturity and Hedging Provisions

The extant provisions on External Commercial Borrowing (ECB) in consultation with the Government of India, has amended the following provisions:

i. Minimum average maturity: Minimum average maturity requirement for ECBs in the infrastructure space raised by eligible borrowers has been reduced from 5 years to 3 years and

ii. Hedging requirements: Average maturity requirement has been reduced from extant 10 years to 5 years for exemption from mandatory hedging provision applicable to ECBs raised by above referred eligible borrowers. Accordingly, the ECBs with minimum average maturity period of 3 to 5 years in the infrastructure space will have to meet 100% mandatory hedging requirement.

All other provisions of the ECB policy remain unchanged.

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