Global fund raising through ECBs on rise: Saradhi Rajan

The number of indian corporates looking to raise funds through external commercial borrowings (ECBs) and dollar bond issuances has increased. Saradhi Rajan, Managing Director, Head of debt capital markets, Bank Of America Merrill Lynch explains that given the inflows into the dollar bond funds globally, there is adequate liquidity available for Indian corporates to access. However, regulatory issues like a 20 per cent withholding tax are keeping corporate issuers at bay. Rajan also recommends that the all-in-cost ceiling imposed on ECBs be eased in order to allow more companies to raise ECBs to refinance domestic debt.