External Commercial Borrowings
An External Commercial Borrowing (ECB) is an instrument to facilitate the access to foreign money by Indian corporations. Borrowers need to infuse 30% of their personal equity and the remaining 70% would be funded by the funder.
ECBs are generally granted for a term loan requirement (CAPEX). A client cannot refinance its existing rupee loan through ECB. The money raised through ECB is cheaper at LIBOR linked rates.
Both seed & brown projects are funded through this medium.