LIBOR to be phased out by 2021!
By Abin Daya The LIBOR is dead! Well, not quite. But in the next 4 years, it could be. The The Financial Conduct Authority (FCA) announced this week that it intended to phase out the LIBOR by 2021. Post that, banks would no longer be compelled to provide interest quotes to the Inter-Continental Exchange, and in the absence of these, the benchmark would die a natural death. What comes after that? We don’t know yet. But the first item this week is something closer home – India’s foreign trade numbers for the month of June. Apart from what is included in the update, I also tried to explore if there was some sort of correlation between industrial production growth and export performance. ...
India Inc raises $1.69 bn from overseas markets in Mar
The Dollar Business Bureau India Inc has raised $1.69 billion from foreign markets in the month of March this year, an increase of 11.6% compared to a year ago. Domestic companies had raised $1.52 billion via external commercial borrowings (ECB) in the month of March last year. An extra $1.65 billion was mopped up via rupee-denominated bonds (RDBs), a type of bond permitted by the Reserve Bank of India (RBI) in 2016 for firms to float such type of bonds in foreign markets to raise funds only. The data is incomparable to RDBs mop-up. The major borrowers that went through the RDB route were HDFC - raised $758.99 million for the purpose of on-lending, Sembcorp Gayatri Power – raised $523.80 million to refinance rupee loans and ...
RBI lends a helping hand to start-ups through ECBs
The Dollar Business Bureau The RBI has permitted start-ups to raise $3 million in one financial year through external commercial borrowings (ECBs). This is a move aimed to boost innovation and aid in creating jobs. In its A.P. (DIR Series) Circular No.13, the RBI has clearly laid down the eligibility criteria for borrowing for the start-ups. The borrowing per start-up will be limited to $3 million or equivalent per financial year either in Indian rupees or any convertible foreign currency or a combination of both. The borrowing can be in the form of loans or non-convertible, optionally convertible or partially convertible preference shares and the minimum average maturity period will be for 3 years In case of borrowing in INR, the non-resident lender, should ...
India Inc borrowed 10% less from foreign market
Source: PTI India Inc raised $3.16 billion from overseas markets in November 2015, down 9.5% from a year ago, RBI data showed on Monday. Of the total borrowings, by way of external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), $2.11 billion was raised through the approval process while $1.05 billion came through the automatic route. As many as 53 companies raised money from the automatic route and 4 via approval, showed RBI data. In the approval category, ONGC Videsh Limited raised $1.78 billion for refinancing of an earlier ECB and the Rural Electrification Corporation mobilised $300 million for on-lending. In the automatic mode, the major borrowers were Indian Railway Finance Corporation ($400 million) for refinancing of an earlier ECB ...
