ECB

Dear Friends,

One of the company is looking for an oportunity to raise ECB. I referred to master cicular on ECB, there is one clause regarding All in Cost Ceilings wherein Average Maturity Period is referred to.

Now i want to know how to calculate this average maturity period.

Plesae revert on this issue asap, an early advice is solicited.

Thanks & With Best Regards,

CS Manishi Tandon

Replies (8)

Dear Manishi

Greetings.

Minimum Average Maturity period is not supposed to be calculated.

This period is the period which is mentioned in form 83 and the Loan agreement.

Regards

 

Rahul Srivastava

Thanks Rahul,

What factors are to be taken into account while mentioning the Minimum Average Maturity period  in form 83.

Dear Manishi

 

There is no hard and fast rules. There are many ECB maturity period s approved by RBI. It can be 3 year, 5 years or may be 8 years.

Deprends upon the lender and borrower. If the gestation period of the borrower is long then definately he will opt long period.

 

Regards

 

Rahul Srivastava

Ok....

Best Regards,

Prepayment of ECB up to USD 500 million may be allowed by the AD bank without prior approval of the Reserve Bank subject to compliance with the stipulated minimum average maturity period as applicable to the loan.

So, if company opts for min. avg. maturity period of 5 years, it cannot prepay ECBs before min. avg. maturity period.

Pls. clarify this..

Best Regards,

Yes you are right if the Average maturity period is 5 years then Loan can not be paid before the end of 5 years. You can say it as a Lock in period.

ok...thanks!!

Dear Friends,

Greetings for the Day!!

One of my friend is in urgent need of a job in real estate company in ncr region as Manager-Business Development or any equivalent post. Has 3 years of work experience and has done MBA in marketing+Finance.

I am sorry for writing for the job requirment on public forum, but due to some unavoidable urgency i have no option but to write. I express my sincere apologies for the same.

can any of my friends help me out...Thanks in advance.

With Best Regards,

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