Email
rajesh@amarons.com
Phone
+91 96012 63501 | +91 79 4032 5151

Products

Structured Products

External Commercial Borrowings (ECB)  

  • External Commercial Borrowing (ECBs) are borrowings provided by non-resident lenders/ foreign institutions/ banks in foreign currency to Indian borrowers.
  • They are used widely in India to facilitate access to foreign money by Indian corporates, its available to Corporate Entities registered in India;
  • ECBs include commercial bankloans, buyers' credit, suppliers' credit, securitised instruments such as floating rate notes and fixed rate bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of multilateral financial Institutions;
  • ECBs can only be used for capital expenditure (capex) and not to be used for investment in stock market or speculation in real estate.
  • The DEA (Department of Economic Affairs), Ministry of Finance, Government of Indiaalong with Reserve Bank of India, monitors and regulates ECB guidelines and policies.

Why ECB:

  • Scarcity of fund in domestic market
  • Cheaper than domestic debts
  • ECBs provide opportunity to borrow large volume of funds
  • ECBs are in the form of foreign currencies. Hence, they enable the corporate to have foreign currency to meet the import of machineries etc.

Routes of raising ECBs

  • Two Routes viz. Automatic Route and Approval Route are there as per RBI Guidelines.

Automatic Route

No RBI approval required

Eligible Borrowers under automatic route:

  • Corporates which are registered under the Companies Act 1956 / 2013.
  • Units in Special Economic Zones (SEZ), however, they cannot transfer or on-lend ECB funds to sister concerns or any unit in the Domestic Tariff Area
  • NBFCs-IFCs for on-lending to the infrastructure sector
  • NBFCs-AFCs for financing the import of infrastructure equipment for leasing to infrastructure projects.
  • Non-Government Organizations (NGOs) engaged in microfinance activities.

Besides, there are few few other criteria to find the eligibility for ECB, for that kindly contact us;  

https://amarons.com/contact-us/

NON CONVERTIBLE DEBENTURES

1.  This structured product can be planned for both, Listed as well as Non listed Companies subject to their credentials.

2.  This product can be helpful over and above their existing credit facilities to fill the gap in working capital or may be for General Corporate Purpose.

3.  Pricing remains in the range of 12 to 16 % p.a. subject to financial credentials of company;

OPERATING LEASE

1.  This is Off Balance sheet transaction.

2.  Its an arrangement wherein the lessee acquires the right to use the asset in return of payment of lease rentals to the lessor.

3.  This is the best option to maintain the liquidity in the company and enhance the cash flow working.

4.  Sale and Lease back option can be worked out when a company wishes to free the locked in Capital in  its Assets and convert it to the liquid cash flow spread over the lease period.

5.  The Pricing remains 9 to 13 % p.a. subject to credit rating.

Other value added products

1.   We also work domestically for raising Term loan which can be worked out in single digit rate of interest p.a. (INR Funding)

2.  We can also work out for Unsecured loans in the range of INR 20 to 25 Crores for a period of 5 years ( No collateral and only personal guarantee of promoters will be attached) with ROI around 9.5% p.a. (approx)

3.  Promoter’s contribution : We have certain structures where we can get the funding to take care of promoters contributions as well by way of borrowings at promoters level. The repayment can be worked out by way of bullet payment ( only interest needs to be served). The security required will be 2 times.

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