This document discusses various sources of overseas finance for Indian corporates, including American Depository Receipts (ADRs), Global Depository Receipts (GDRs), Samurai bonds, Yankee bonds, Masala bonds, and External Commercial Borrowings (ECBs). ADRs allow US investors to purchase stock in foreign companies, while GDRs represent shares in a foreign company that can be traded in multiple markets. Samurai bonds are yen-denominated bonds issued in Japan, and Yankee bonds are US dollar-denominated bonds issued in the US. Masala bonds are rupee-denominated bonds issued overseas. ECBs allow Indian companies to raise money abroad in foreign currency under

1. SOURCES OF OVERSEAS
FINANCE FOR INDIAN
CORPORATES
Shivani Thosar MBA ( B & F )

2. HIGHLIGHTS
1. ADR
2.GDR
3.SAMURAI BONDS
4.YANKEE BONDS
5.MASALA BONDS
6.ECB

3. ADR(AMERICAN DEPOSITORY
RECEIPTS)
An American depositary receipt (ADR) is
a negotiable certificate issued by a U.S.
depository bank representing a specified number
of shares—often one share—of a foreign
company's stock.
ADRs offer U.S. investors a way to purchase stock
in overseas companies that would not be
available otherwise. ADRs are denominated in
U.S. dollars

4. GDR(GLOBAL
DEPOSITORY RECEIPTS)
A global depositary receipt (GDR) is a
bank certificate issued in more than
one country for shares in a foreign
company.It is a type of bank certificate
that represents shares in a foreign
company, such that a foreign branch of
an international bank then holds the
shares.
Investors trade GDRs in multiple
markets, as they are considered to be
negotiable certificates.
Each GDR represents a particular
number of shares in a specific
company.

5. SAMURAI BONDS
A samurai bond is a yen-denominated
bond issued in Tokyo by a non-Japanese
company and subject to Japanese
regulations. Other types of yen-
denominated bonds are Euroyens issued
in countries other than Japan, typically in
London.
A foreign issuer who wants access to the
Japanese debt market would issue a
bond referred to as a Samurai bond.
Samurai bonds give issuers the ability to
access investment capital available in
Japan.

6. YANKEE BONDS
A Yankee bond is a debt obligation issued by
a foreign entity, such as a government or
company, which is traded in the United
States and denominated in U.S. dollars.
Yankee bonds are governed by
the Securities Act of 1933, which requires
the bonds to be registered with
the Securities and Exchange Commission
(SEC) before being offered for sale.
Yankee bonds are frequently issued in
tranches, individual portions of a larger debt
offering or structured financing
arrangement that have differing risk levels,
interest rates and maturities, and offerings
may be extremely large, as much as $1
billion.

7. MASALA BONDS
Masala bonds are those bonds that are
issued outside India but denominated in
Indian Rupees. Masala is an Indian word
that means spices. The term was used to
speak of India’s culture and cuisine by
the International Finance
Corporation (IFC).
Masala bond is bearing the risks to
creditors. The first Masala Bond was
issued to fund infrastructure projects in
India by the IFC (International Finance
Corporation), backed by the World Bank
in November 2014. In August 2015, the
IFC issued green mass bonds and raised
Rupees for $3.15 billion for private sector
investments to address climate change in
India.

8. ECB ( EXTERNAL
COMMERCIAL BORROWINGS)
An external commercial borrowing (ECB) is an
instrument used in India to facilitate Indian
companies to raise money outside the
country in foreign currency. The government
of India permits Indian corporates to raise
money via ECB for expansion of existing
capacity as well as for fresh investments. ECB
can be availed by either automatic route or
by approval route.
Under automatic route, the government has
permitted some eligibility norms with respect
to industry, amounts, end-use etc. If a
company passes all the prescribed norms, it
can raise money without any prior approval.

9. THANK YOU