RBI eases foreign borrowing limit for infra companies
Posted on: 12:50 AM IST Jan 08, 2013
Mumbai: The Reserve Bank of India (RBI) said on Monday it has relaxed overseas borrowing limits for infrastructure finance companies, a move that will enable companies in the investment-hungry sector to raise funds more easily.
The RBI said infrastructure finance companies will no longer need to seek approval for raising funds overseas equivalent to up to 75 per cent of their owned funds. The limit had been 50 per cent.
India's infrastructure companies raise a large chunk of their borrowings from overseas because of attractive rates.
The RBI also relaxed the hedging requirement for currency risk for these companies to 75 per cent of the exposure, from an earlier limit of 100 per cent.