RBI eases foreign borrowing limit for infrastructure companies

MUMBAI Mon Jan 7, 2013 8:18pm IST

A worker sitting inside a crane is silhouetted against the setting sun at the construction site of a commercial complex in Noida, in Uttar Pradesh September 21, 2011. REUTERS/Parivartan Sharma/Files

A worker sitting inside a crane is silhouetted against the setting sun at the construction site of a commercial complex in Noida, in Uttar Pradesh September 21, 2011.

Credit: Reuters/Parivartan Sharma/Files

Related Topics

MUMBAI (Reuters) - 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 percent of their owned funds. The limit had been 50 percent.

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 percent of the exposure, from an earlier limit of 100 percent.

(Reporting by Neha Dasgupta; Editing by Catherine Evans)

FILED UNDER:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Regulating Airfares

Regulating Airfares

India considers temporary cap on airfares - government official  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet  Full Article 

Oil Price Forecast

Oil Price Forecast

Oil prices likely to rebound in second half of 2015: poll  Full Article 

Cyber Attacks

Cyber Attacks

China condemns cyberattacks, but says no proof N.Korea hacked Sony  Full Article 

Connecting Markets

Connecting Markets

China stock connect scheme scorecard throws up surprises  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage