Shriram Transport Finance said it plans to use the proceeds from the fund raise for onward lending and other activities as may be permitted by the External Commercial Borrowings (ECB) directions.
That change comes only a few months after the central bank shut its monthly asset purchases, known as quantitative easing (QE), and March's offer of new long-term loans, or TLTROs, to start in September.
With RBI committed to injecting required liquidity in the system, short-term rates are expected to ease in line with expected rate cuts.
The domestic firms had raised as much as USD 3.1 billion through the external commercial borrowing (ECB) route in the corresponding month of 2018.
After weeks of speculations and uncertainties over the future course of Jet Airways, which has grounded over 80 planes due to financial woes, the airline's board Monday approved a resolution plan formulated by SBI-led domestic lenders.
The rapid changes in the monetary policy stances of global central banks have led to the market repositioning
Spot gold was up 0.1 percent at $1,286.91 per ounce as of 0408 GMT. The metal, earlier this week, hit an over five-week low and was down about 0.5 pct so far for the week.
Of the total borrowings during the month, USD 2.27 billion was raised through the automatic route of the ECBs.
RBI’s expert committee clearly has a tough job on its hands.
Of the total fundraising during last month, USD 3.77 billion was mobilised through external commercial borrowings (ECBs) in the foreign markets, while USD 37.04 million was through rupee-denominated bonds (RDBs), showed the RBI data on ECB for December 2018.
But the system-wide impact of this will be limited, as there were masala bonds and foreign-currency debt issuances recently with a minimum average maturity of 10 years, global rating agency Fitch said on Friday.
The housing finance company further said that it raised a total USD 465 million (Rs 3,324 crore) through ECB during the third quarter of 2018-19 of five-year tenure. "The facility has come at a landed cost which is much below the domestic pricing for similar tenor," PNB Housing Finance Managing Director & CEO Sanjaya Gupta said.
"Looking ahead, global economic activity is expected to decelerate in 2019 and remain steady thereafter," the ECB said in its regular economic bulletin.
FIIs paused in their buying across key EMs. Outflows around $100 million were seen from Malaysia, South Korea, and Thailand. Taiwan and India saw outflows of almost $500 million each.
The long-flagged end of bond buys must be irreversible for the sake of credibility, but with France and Italy in political turmoil, a global trade war still looming large and growth slowing, ECB chief Mario Draghi will be keen to emphasise that other forms of support will remain.
Having bought more than 2.6 trillion euros worth of mostly government bonds since March 2015, the ECB has been slowly trimming back its purchases, hoping it has already done enough to bolster growth and inflation.
The government's earlier moves like tariff hikes on non-essential items were also "not significant either", the American brokerage said in a note.
That indicates that investors are not only fully pricing in a 10 basis point hike in the ECB's deposit rate for September but have brought forward their expectations for a rate move from October 2019.
Prior to this announcement, the tenure was a minimum average maturity period of 3 years
Makuch, whose term ends in 2021, told reporters he considers finance minister Peter Kazimir as a suitable replacement.