Companies that are rated investment grade locally can use the central bank’s looser rules on external commercial lending, reserve Bank of India ,reserve Bank of India) said on Monday, giving further regulatory clarity on the creditworthiness for availing this limited period offer.

The special arrangement will expand the universe of local borrowers who wish to tap global money centers for funds.

“The enhanced overall cost ceiling will be available only to eligible borrowers of investment grade rating: Indian Credit Rating Agencies (CRA),” the RBI had said on July 11, when it doubled the lending limit of a local company to $1.5 billion through the External Commercial Lending Mechanism under the automatic route.

Several foreign lenders engaged in raising foreign loans and bonds for Indian companies had earlier sought clarity from the RBI on whether the revised rules on high offshore borrowings would apply only to highly-rated firms globally, ET reported on July 11. Threatened to limit such criteria to the number of potential beneficiaries

“under all cost limits ECB “This framework is also being increased by 100 basis points, subject to the investment grade rating of the borrower,” RBI said on Monday.

This limit is currently capped at 5 percentage points. The eased rules will be applicable only till December 31.

Dealers said a top-rated company globally can price a bond or loan in the range of 100-200 basis points depending on its brand. One basis point is 0.01%.

However, a high-yielding company by foreign rating agencies needs to offer much more to attract global banks/investors.