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Advantages of ECBs (External Commercial Borrowings)

Q: I want to know whats the use of ECBs in real estate?

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Replies (5)
1
Since the prevailing interest rates are being quoted too high, ECBs are considered a cheaper source of funding by corporates.
Tamal


2
Some of the leading developers like Provident Housing, Mantri Realty, and Value and Budget Housing Corporation (VBHC) have already been taking ECBs.
Anil Singh


3
Foreign debt flows like ECBs have become a big source for getting easy funds, especially in the real estate sector.. Because all-in costs including hedge costs through the ECB route works out to be less than 10 percent against the 13-15 percent prevailing in the open market and banks
Nilufar


4
Along with funding at minimal interest rates, builders will get an alternative route to raise funds at a time when they are facing a liquidity crunch
Jeet Bhaskar


5
At present, the supply of low cost housing is low.. the ECB window will help developers raise resources at cheaper rates, which would help them build more low-cost housing projects
Vibhor


6

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