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FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA

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. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA. Foreign Direct Investment (FDI) to India is permitted through:

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FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA

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  1. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Presentedby 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 Bank of Baroda, Guangzhou

  2. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA 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 Bank of Baroda, Guangzhou

  3. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA • Inflow and outflow of Foreign Exchange is controlled by: • RBI • FEMA Regulations • Public Issues are controlled and regulated by SEBI. Bank of Baroda, Guangzhou

  4. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Financing may be in the form of: • Equity • Debt • Combination of both Bank of Baroda, Guangzhou

  5. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA 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. Bank of Baroda, Guangzhou

  6. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Debt may be : • External Commercial Borrowing through Automatic Route or through Approval Route of RBI • Rupee Funding • Convertible Debenture and Corporate Bonds Bank of Baroda, Guangzhou

  7. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA 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. Bank of Baroda, Guangzhou

  8. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Rupee Funding may be availed for : • Project Finance – for meeting project infrastructure with larger maturity period. • Term Finance – for acquiring Fixed Assets repayable over 3 to 5 years. • Working Capital – in the form of Cash Credit for financing 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 Bank of Baroda, Guangzhou

  9. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA 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. Bank of Baroda, Guangzhou

  10. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA • 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). Bank of Baroda, Guangzhou

  11. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA • Funding from Capital Market: • Public Issue that is controlled and regulated by SEBI. • Private placement to Indian investors. • Private equity to venture capital investors. Bank of Baroda, Guangzhou

  12. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Rating Agencies in India: CRISIL ICRA CARE FITCH Bank of Baroda, Guangzhou

  13. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA 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） Bank of Baroda, Guangzhou

  14. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA • 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

  15. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA 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）: bobgz628@yahoo.com - Bank of Baroda, Guangzhou

  16. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA • Thank You 谢谢！ Bank of Baroda, Guangzhou

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