Financing Foreign Operations

Source of Funds Long TermShort Term EquityDebtEuro debtOverdraft Parent company Local investors Local banks Financial institutions Eurobond issue Local banks (collateral security) Euro currency market

Raising Foreign Currency Finance Foreign currency loans from financial institutions Long term loans for meeting foreign currency expenditure towards import of plant, machinery, equipment etc. External commercial borrowings Corporates are allowed to raise up to a specified amount from the global markets. Permission from Ministry of finance, RBI etc. is needed. Euro issues Foreign currency taken from major international banks bye issuing depository receipts & euro convertible issues. Issues in foreign domestic market Sell securities directly in the domestic markets of foreign countries. A foreign issuer has to satisfy all regulations applicable to domestic firms.