bank of baroda, guangzhou1 financing option for foreign investors in india presented by...

Bank of Baroda, Guangzhou 1

FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA

• Presented by R.Gopalakrishnan, Chief Executive, Bank of Baroda,

Guangzhou branch•由印度巴鲁达银行广州分行区域总裁 Gopalakrishnan 先生进行介绍



Foreign Direct Investment (FDI) to India is permitted through:

外商可通过以下渠道进行直接投资：• Financial Collaboration 金融合作

• Joint Ventures & Technical collaboration 合资及技术合作

• Capital Market via Euro Issues 通过欧元债券进入资本市场

• Private placement & Preferential allotment 私人配售及优先配发



• Inflow and outflow of Foreign Exchange is controlled by:

• RBI

• FEMA Regulations

• Public Issues are controlled and regulated by SEBI.



Financing may be in the form of:

• Equity

• Debt

• Combination of both



Equity may be :

• Ordinary Share Capital or combination of Ordinary Share Capital and Preference Share.

• For Wholly Owned Subsidiaries – 100% equity in the form of foreign currency.

• For Joint Ventures – Only to the extent of Investors share.



Debt may be :

• External Commercial Borrowing through Automatic Route or through Approval Route of RBI

• Rupee Funding

• Convertible Debenture and Corporate Bonds



Automatic Route of Reserve Bank of India:• Approval is given in 2 weeks and equity

cap ranges between 24% to 100% depending on its category.

• Approval Route of Foreign Investment Promotion Board: Approval is given in 4 to 6 weeks and is liberal to all sectors. It is not mandatory for foreign investors to have a local partner.



Rupee Funding may be availed for :• Project Finance – for meeting project infrastructure with l

arger maturity period.• Term Finance – for acquiring Fixed Assets repayable ov

er 3 to 5 years.• Working Capital – in the form of Cash Credit for financin

g inventory,S.I.P & Finished goods. Packing Credit and Post Shipment finance in the form of Invoice Financing,Bill Discounting/Negotiations etc.

• Other Options : Short Term Demand Loan, FCNR (B) Loan, C.P etc



Non Fund Based Facility:

• Letter of Credit for purchase of inventory, Machinery etc.

• Bank Guarantee either Performance or Financial based on requirement.

• Deferred Payment Guarantee for acquiring high cost fixed asset.



• Foreign companies with good track record and sound financials can raise capital through issue of Indian Depository Receipt (IDR). This requires approval of Securities and Exchange Board of India (SEBI).



• Funding from Capital Market:• Public Issue that is controlled and regulated by S

EBI.• Private placement to Indian investors.• Private equity to venture capital investors.



Rating Agencies in India:

CRISIL

ICRA

CARE

FITCH



INDIAN BANKS OPERATING IN CHINA:

→State Bank of India, Shanghai （印度国家银行，上海）→ Bank of India, Shenzhen （印度银行，深圳）→ Bank of Baroda, Guangzhou（印度巴鲁达银行，广州）→ Canara Bank, Shanghai （卡纳拉银行，上海）



• REPRESENTATIVE OFFICES OF INDIAN BANKS:• State Bank of India, Tianjin （印度国家银行，天津）• Bank of India, Beijing （印度银行，北京）• Punjab National Bank, Shanghai （本杰比国民银行，上海）• Union Bank of India, Shanghai （印度联合银行，上海 )• Axis Bank, Shanghai （同心银行，上海）• ICICI, Shanghai （爱西爱西爱银行，上海）• Allahabad Bank, Shenzhen （阿拉哈巴德银行，深圳）• Uco Bank, Guangzhou （友固银行，广州）• Indian Overseas Bank, Guangzhou （印度海外银行，广州）



Bank of Baroda, Guangzhou Branch contact details :-

印度巴鲁达银行广州分行联系方式• R.Gopalakrishnan, Chief Executive - 区域总裁• Rajeev Kumar, Asstt. Manager- 行长助理• METRO PLAZA, 2011 – 2013, 183 Tian He Bei Road,

Guangzhou. 510620. 广州市天河北路 183 号大都会广场 2011-2013 室（邮编 510620 ）• Telephone （电话） Nos: 00 86 20 8375 2390, 8375 2466

• Fax （传真） : 00 86 20 8375 2285 • E mail （邮箱） : [email protected] -



• Thank You 谢谢！

bank of baroda, guangzhou1 financing option for foreign investors in india presented by...

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