Industry Odisha Bureau, Jun 11: Soon after the Reserve Bank of India (RBI) announced its Special Forex Swap Window (FSW) for External Commercial Borrowings (ECBs) on June 5 this year, large Public Sector Undertakings (PSUs) have reportedly evinced keenness on fundraising probably to a tune of over $5 billion dollar through overseas loans.
The RBI’s special initiative has reportedly “allowed ECBs raised by Indian PSUs until December 31, 2026 and with a maximum tenure of five years.”
It is reportedly claimed that the RBI’s “special concessional forex swap facility would make foreign currency significantly cheaper.”
It has further been reported that the RBI’s such a facility will “effectively absorb the cost of hedging dollar exposure”, “be available at a fixed 1.5% annual rate (compounded semi-annually)”, “also cover the undrawn portions of existing ECBs”, and “ensure borrowings involving embedded options and refinancing excluded”.
As per media reports, five state-owned PSUs, like the ‘Housing and Urban Development Corporation Limited (HUDCO)’, ‘National Bank for Financing Infrastructure and Development (NaBFID)’, ‘Power Finance Corporation (PFC)’, ‘Rural Electrification Corporation Limited (REC)’ and ‘Indian Railway Finance Corporation (IRFC)’ are now mulling for overseas fundraising following the RBI’s Special FSW For ECBs.
