Manner and form of raising ECBs

Manner and form of  raising ECBs- 

Modes of raising ECBs-

• Commercial Bank Loans : in the form of term loans from banks outside India 
• Buyer's Credit 
• Supplier's Credit 
• Securitized instruments such as Floating Rate Notes (FRNs), Fixed Rate Bonds (FRBs), Syndicated Loans etc. Syndicated Loan, CP 
• Credit from official export credit agencies 
• Commercial borrowings from the private sector window of multilateral financial institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, 
• Loan from foreign collaborator/equity holder, etc and corporate/institutions with a good credit rating from internationally recognized credit rating agency 
• Lines of Credit from foreign banks and financial institutions 
• Financial Leases 
• Import Loans 
• Investment by Foreign Institutional Investors (FIIs) in dedicated debt funds 
• External assistance, NRI deposits, short-term credit and Rupee debt 
• Foreign Currency Convertible Bonds 
• Non convertible or optionally convertible or partially convertible debentures 
• Bonds, Credit notes, Asset Backed Securities, Mortgage Backed securities
  · Not expressly covered but Guidelines refer to securitised notes
• Redeemable preference shares are considered as part of ECBs 

As per Indian corporate law, all preference shares are mandatorily redeemable unless they are convertible Hence, convertible preference shares will not be ECB (will be Foreign Direct Investment). Non convertible, partly convertible or optionally convertible preference shares are treated as ECBs