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what is the major difference between ECBs and FCCBs.
how is the accounting treatment done to them as to mitigate
the forex fluctuation?

Answer Posted / a

FCCB's are to be repaid out of the internal accurals of the
company or buy raising a loan. Since libor is at low levels
many companies are raising ECB at L+350 bps which works out
to be 500 bps, which is much cheaper than INR term loans @
11%. Also if the company has exports, it acts as a natural
hedge thereby saving the hedging cost.

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