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These are foreign currency loans, usually at floating rate of interest, arranged by one or more lead managers (banks) with one or more other banks participating in the loan.You can read all about ECB's at www.banknetindia.com. Following is extract from banknetindia.com's section on ECB's:
External Commercial Borrowings (ECBs) are defined to include commercial bank loans, buyers' credit, suppliers' credit, securitised instruments such as Floating Rate Notes and Fixed Rate Bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of Multilateral Financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc.
ECBs are being permitted by the Government as a source of finance for Indian Corporates for expansion of existing capacity as well as for fresh investment.
Companies are free to raise ECB from any internationally recognised source such as banks, export credit agencies, suppliers of equipment, foreign collaborators, foreign equity-holders, international capital markets etc. offers from unrecognised sources are not allowed.
For more on ECBs click here
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