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RBI cuts minimum maturity period for offshore rupee debt

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Reuters MUMBAI
Last Updated : Apr 13 2016 | 6:42 PM IST

MUMBAI (Reuters) - Reserve Bank of India said on Wednesday it would lower the minimum maturity period for rupee debt issued abroad by Indian companies to three years from five years, in line with foreign investment in corporate bonds.

The RBI also said Indian companies would be allowed to raise up to 2.4 trillion rupees ($36.03 billion) worth offshore rupee debt as part of the overall corporate bond limit, while each company will be able to issue up to 50 billion rupees in debt through the automatic route.

Previously, the limits had been set in dollar terms within the overall aggregate limit of $51 billion and an individual limit of $750 million, but the rupee amount would change depending on the prevailing exchange rate.

The RBI had announced changes to corporate debt investments at its policy review in September.

($1 = 66.6195 rupees)

(Reporting by Neha Dasgupta; Editing by Biju Dwarakanath)

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First Published: Apr 13 2016 | 6:24 PM IST

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