External commercial borrowing
Fundamental analysisAlso called: External commercial borrowings
Borrowing raised from overseas lenders or bond buyers in foreign currency, within the framework the Reserve Bank prescribes for who may borrow, from whom, for how long and at what all-in cost.
In plain terms
The headline coupon is not the cost. The cost is the coupon plus the hedge — and where it is unhedged, the cost is unknown until the rupee has moved.