FAQs - ECB Funding
External Commercial Borrowing (ECB) is fundamentally a loan availed (i.e. raise money) by an Indian companies or big corporations in foreign currency from a non-resident foreign lender. ECB can be broadly classified as under : a) Commercial Loans b) Foreign Currency Convertible Bond {FCCB} or Foreign Currency Exchangeable Bonds (FCEBs) c) Trade Credits (TC) - Suppliers Credits/ Buyers credit d) Other Borrowings.
Access to a wider pool of capital, diversification of funding sources, and potentially lower cost of borrowing. ECBs in the form of commercial loans can be raised to finance a variety of purposes, including the expansion of business, the acquisition of assets, and the repayment of existing debt with certain conditions, etc.