Offshore debt is cheaper — until the compliance and hedging are ignored.
Offshore pricing looks materially better than domestic debt, so ECB is on the table — until questions arise on eligible borrower status, permitted end-use, the all-in-cost ceiling and who does the reporting.
Where most of these mandates start.
Offshore pricing looks materially better than domestic debt, so ECB is on the table — until questions arise on eligible borrower status, permitted end-use, the all-in-cost ceiling and who does the reporting.
Get any of these wrong and the borrowing is non-compliant, or the currency exposure quietly erases the interest saving.
How capital providers actually assess this.
ECB is governed by the RBI framework: eligible borrowers, recognised lenders, minimum average maturity, all-in-cost ceiling and a negative list of end-uses. Every borrowing needs a Loan Registration Number before drawdown and periodic Form ECB reporting thereafter.
The commercial case turns on the hedged cost, not the coupon. An unhedged foreign-currency liability against rupee revenues is a market position, not a financing decision.
The parameters this is assessed against.
- Ticket size
- USD 5 Mn – 100 Mn+
- Borrower
- Eligible entity under the RBI ECB framework
- Lender
- Recognised lender — foreign institutions, funds, equity holders
- Maturity
- Minimum average maturity as prescribed by the framework
- End-use
- Permitted uses only; negative list strictly applied
What has to be on the table.
- Audited financials for the last three years plus latest provisional numbers
- GST returns and bank statements for the last 12 months
- Company profile, shareholding pattern and group structure
- KYC of the entity, promoters and directors
- Board and shareholder resolutions authorising the raise
- FEMA / ECB compliance file, LRN and Form ECB where applicable
- Hedging policy and currency exposure analysis
- Transfer-pricing and tax-structuring opinion for the flow of funds
We understand the capital requirement, structure the transaction and take it to the right capital providers.
Understand the requirement
Purpose, quantum and tenor tested against ECB eligibility and permitted end-use before anything else.
Structure the transaction
Lender selection, maturity and pricing within the cost ceiling, security and guarantee position, and a hedging plan that makes the landed cost genuinely competitive.
Take it to the right capital providers
Offshore institutions, credit funds and development finance sources with appetite for the sector and jurisdiction.
Term sheets, negotiation and closure
We run competing term sheets side by side, negotiate pricing, covenants and security, manage diligence, and stay on the mandate through documentation and disbursement.
Answers before the first call.
What is ECB funding?
External Commercial Borrowing is foreign-currency or rupee-denominated debt raised by eligible Indian entities from recognised offshore lenders, under the RBI's ECB framework governing maturity, cost and end-use.
What can ECB proceeds be used for?
Permitted end-uses under the framework, typically including capital expenditure and specified refinancing. A negative list applies and must be checked before the structure is fixed.
Is hedging mandatory for ECB?
Hedging requirements depend on the borrower category and framework conditions, but as a commercial matter unhedged foreign-currency debt against rupee revenues is rarely advisable.
Share the requirement. We will tell you candidly whether it is fundable, and how.
Senior-led review under a mutual NCND. No retainer — engagement is success-linked. Prefer a detailed brief? Use the full funding requirement form.