RBI notifies new external commercial borrowing and overseas rupee debt norms

MUMBAI: The Reserve Bank of India has notified the new external commercial borrowing and overseas rupee debt norms which provides room for even REITs and Infrastructure Investment Trusts to raise funds.

The bonds should have a minimum maturity of five years, and issuers can raise up to $750 million under automatic approval.

"Any corporate or body corporate is eligible to issue Rupee denominated bonds overseas," RBI said in a notification. " Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) coming under the regulatory jurisdiction of the Securities and Exchange Board of India are also eligible."

The proceeds can be used for all purposes barring real estate activities other than for development of affordable housing projects, investing in capital market and using the proceeds for equity investment domestically, purchase of land and activities prohibited as per the foreign direct investment ( FDI) guidelines.

The foreign currency - rupee conversion will be at the market rate on the date of settlement for the purpose of transactions undertaken for issue and servicing of the bonds.