External Commercial Borrowings for infrastructure projects allowed for holding companies and CICs to fund SPVs under conditions. Holding companies and Core Investment Companies regulated by the Reserve Bank may raise External Commercial Borrowings for project use in SPVs in the infrastructure sector, provided the SPV is dedicated to the project, proceeds fund fresh capex or approved refinancing, and are used within three years of the SPV's Commercial Operations Date. Proceeds must be held in a separate escrow account and monitored by AD Category I banks, with an undertaking from the SPV against alternate funding for that capex. CICs must keep outside liabilities, including ECB, within 2.5 times adjusted net worth and, if below the asset threshold, raise ECB on a fully hedged basis.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
External Commercial Borrowings for infrastructure projects allowed for holding companies and CICs to fund SPVs under conditions.
Holding companies and Core Investment Companies regulated by the Reserve Bank may raise External Commercial Borrowings for project use in SPVs in the infrastructure sector, provided the SPV is dedicated to the project, proceeds fund fresh capex or approved refinancing, and are used within three years of the SPV's Commercial Operations Date. Proceeds must be held in a separate escrow account and monitored by AD Category I banks, with an undertaking from the SPV against alternate funding for that capex. CICs must keep outside liabilities, including ECB, within 2.5 times adjusted net worth and, if below the asset threshold, raise ECB on a fully hedged basis.
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