Long-Term Borrowers

rile stipulations relating to long-term ECBs are as detailed below.   (I) ‘ECBs of eight years average maturity and above are ‘outside the ECB  eiling, though the the Governments Rsl’s prior approval for such borrowings would continue to be necessary. The  extent of debt under this  window is reviewed periodically by the Government.  (U) funds raised under this window are not subject to end-use restrictions other than  hat  relating to investment in real estate and stock market up to the ‘extent of: (a) USD 200 million if the maturi~is 8 years and above but   less than 16 years; and (b) USD 400 million if the average maturity is 16 years .and above.

 (ill) .Amounts raised above the limit at ii (a)   and (b) are subject to the normal end-use conditions prescribed under the general ECB guidelines.  (Iv) To be eligible for this purpose, the  long-term debt instrument should not include any ‘put”  or call options that potentially reduce the stated maturities. (v) Development.   financial institutions Q)f1s) may raise ECBS under this window in addition to their nonnal annual allocation covered by the cap Borrowings under this long-term window, which are exempted from the cap, are not eligible  for the purpose of enhancing the maturity  f   short term borrowings, prescribed under the  normal ECB window, to reach the required average maturity. In case borrowings or eight” years maturity and above are’ to be used to lengthen the maturity of a shorter term  borrowing, the entire amount must be treated as  within the cap.

 (vU) Utilisation of EeBs approved earlier under the regular ECB is not a limiting factor for’ considering proposals under the   long-term maturity window. However, additional borrowing under either of the windows, that is, regular or long-term maturity, is subject to   utilization of  earlier approvals in the same window. (vW) Corporates may raise these borrowings through fRN, bond issues, syndicated   loans and so on as long as the maturity and the interest spread are maintained as per the guidelines.  (lx) Project appraisal report is not  necessary if funds are raised under the long-term maturity   dow to be utilised for general corporate objectives, subject to the limits  prescribed in  para (ii) above.

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