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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