RBI has allowed companies to raise up to $1 bn but hedging of costs could make this unattractive for borrowers
Though the Reserve Bank of India has allowed real estate developers and housing finance companies to raise up to $1 billion (Rs 5,400 crore) via external commercial borrowing (ECB), hedging of costs could make this unattractive for borrowers. "It looks very difficult to raise funds through this new window. Monitoring use of funds is going to be a challenge. Also, there is a question mark over preparation and ability for managing currency risks even through hedging," said S Srinivasaraghavan, head, treasury, Dhanlaxmi Bank.
Technology Partners: MimirTech
Links:
[1] http://admin.indiaenvironmentportal.org.in/news/limited-takers-likely-ecb-booster-cheap-housing
[2] http://admin.indiaenvironmentportal.org.in/category/author/raghavendra-kamath
[3] http://admin.indiaenvironmentportal.org.in/category/author/abhijit-lele
[4] http://admin.indiaenvironmentportal.org.in/category/newspaper/business-standard-new-delhi
[5] http://admin.indiaenvironmentportal.org.in/category/thesaurus/housing
[6] http://admin.indiaenvironmentportal.org.in/category/thesaurus/housing-finance
[7] http://admin.indiaenvironmentportal.org.in/category/thesaurus/construction-industry
[8] http://admin.indiaenvironmentportal.org.in/category/thesaurus/housing-construction
[9] http://admin.indiaenvironmentportal.org.in/category/thesaurus/habitat-and-urbanisation
