Comprehensive overview of External Commercial Borrowings (ECB): Eligible investors, investees, and investment instruments

IntroductionExternal Commercial Borrowings (ECBs) are commercial loans extended to Indian borrowers by non-resident lenders. These may take the form of bank loans, buyers’ credit, suppliers’ credit, or securitised instruments such as floating rate notes and fixed rate bonds. ECBs are characterized by a minimum average maturity period of three years and are governed by the…