External Commercial Borrowings
The foreign currency borrowings raised by the Indian corporates from confirmed banking sources outside India are called "External Commercial Borrowings" (ECBs). These Foreign Currency borrowings can be raised within ECB Policy guidelines of Govt. of India/ Reserve Bank of India applicable from time to time.
ECBs at Bank of Baroda
Bank of Baroda is very active and is a leading player in granting and arranging various forms of foreign currency facilities through ECB route for the Indian Corporates. BOB focuses on all type of foreign currency credit requirements of Indian corporates in arranging the Foreign Currency Loans.
Bank of Baroda, India’s International Bank ,having a strong global presence with more than 100 branches / offices in 24 countries including the major global Financial Centers ( Brussels, Dubai, Hong Kong, London, New York and Singapore etc.) is very evenly placed and have an edge over all others in its capability to arrange/ grant the funds from the international market.
Bank of Baroda has a few decades of experience in arranging foreign currency loans. This long experience and wide presence across the globe brings leverage to BOB to understand the ECB market better thus offer best terms to the clientele.
International Merchant Banking Cell (IMBC)
With rising activities by Indian corporates in the global as well as back home in India , the quest for cheaper and quicker global fund is growing at a substantial pace. Mid-sized companies have also joined the bandwagon. The idea behind is to scale up operations, become globally competitive and getting access to foreign markets.
They will also require the international Corporate/ Merchant/ Investment Banking Services to arrange the funds as well for other purposes.
International Merchant Banking Cell (IMBC) has been set up at BCC, Mumbai to pay focused attention to the international merchant banking needs of Indian corporates with special emphasis on External Commercial Borrowing .
IMBC has been offering Corporate/ Merchant/ Investment Banking services with a range of products/ activities as enumerated below:
- Arranging/ granting Foreign Currency Loans/ External Commercial Borrowing.
- Providing whole range of transactional banking services to Indian corporates for their offices, Joint Ventures, Subsidiaries abroad at places where we have branches.
- Offering Foreign Exchange/ Derivative products.
- Providing Buyers’ Credit/ Suppliers’ Credit.
- Arranging / underwriting/ participating in Syndicated Loan
- Raising funds for corporates through bilateral loans/ club deals
- Arranging funds from International Markets by way of Bonds, FRNs, FCCBs etc.
- Arranging loans from Export Credit Agencies of other countries
- Advisory services on overseas investments
- Innovative tailor-made solutions to the specific requirements of corporates.
- Structured financing for procuring specific assets such as rigs, ships, aircrafts etc.
- Financing and structuring cross border acquisition debt
Global Syndication Centre (GSC) at London (UK)
Regional Syndication Centre (RSC) at Dubai (UAE)
Bank has set up Global Syndication Centre (GSC) at London (UK) and Regional Syndication Centre (RSC) at Dubai (UAE) to exclusively arrange tailor made solutions for foreign currency / services at a competitive price for Indian / non Indian corporates .
It has a dedicated, professionally expert and specialist team both in India and abroad with international exposure in the area of arranging Loan Syndication / other services.
Intending corporate / Institutional clients can contact any of the following offices
- Corporate Financial Service Branches (CFS) (click branch locator)
- Corporate Banking Branches (CBBs) (click branch locator )
- International Business Branches (IBBs) (click branch locator )
- Nearest selected branches (click branch locator )
- Main branch of the city (click branch locator )
OR you may approach directly to the
Assistant General Manager
International Division, BCC
Tel No: 91-22-6698 5409
Fax No: 91-22- 26523509
The concerned branch will assess/ appraise the financial and other information to be given by the company like any other rupee credit facilities. The corporates need to ascertain that their requirement is as per the ECB guidelines of the RBI/ Govt. of India. Details of ECB policies / guidelines are available on RBI website (www.rbi.org.in)
The pricing of the foreign currency loans/ services implies the total cost to the company comprising –
- rate of interest / margin ( it is linked with the risk profile of the intending borrower)
- arrangement / upfront fee and other fees.
The arrangement fee / upfront fee is a onetime cost. The pricing depends on various factors such as the credit rating of the borrower, tenor of the loan, demand/supply position of the foreign currency available, market conditions etc. The prices keep on changing as per the market scenario and are normally valid for a period of -30- days. In addition to the pricing, there are legal/ documentation / out of pocket expenses etc. These are normally in the range of US$ 15,000 or US$ 20,000, but can be higher in some cases.
Pricing offered is flexible, can be discussed and negotiated.
ECB through Syndicated Loans- Stages in brief:
- To discuss the terms and conditions of the ECB and finalize the same with BOB.
- To give the mandate to BOB to arrange the ECB.
- Bank will arrange to end to end solutions as required for syndication
- To obtain required approvals from RBI/ Govt. of India.
- Execute Loan Agreement and create charge on the securities, if applicable.
- If applicable, obtain exemption from withholding tax under Section 10(15)(iv)
For further details, please contact the Bank of Baroda Branch nearest to you.