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.