Ashok Leyland concludes $200 mn ECB prog

New Delhi, Mar 26: Hinduja Group flagship firm Ashok Leyland today said it has concluded its External Commercial Borrowing (ECB) programme of 200 million dollars. This is the largest ever loan taken by the company in a single transaction till date, it said in a statement.

Ashok Leyland has broad-based its relationships, with the facility being subscribed to by several banks, including the leading foreign banks. The loan will partly fund the requirements of the firm to meet its expansion plans and overseas investments. It has already received RBI approval to proceed with the drawdown. As per the guidelines of RBI, companies can use the proceeds of ECB only for meeting forex requirements for capital expenditure and other overseas investment purposes. ''This deal is significant for the company in many ways.

Meant to meet the company's funding requirements, the deal got successfully completed at a time when the global financial markets are in turmoil. Secondly, it has been concluded at very competitive rate,'' said company Chief Financial Officer K Sridharan.

The funds would be drawn over the permitted period and the company would be taking necessary hedging measures to protect itself from the vagaries of exchange markets, he added.

UNI