CHENNAI: The Hinduja Group flagship company, Ashok Leyland, has raised $200 million through external commercial borrowing.

This is the largest ever loan taken by the company in a single transaction till date, says a release from the company.

The company had broad based its relationships with the several banks, including leading foreign bank, subscribing to the ECB facility. The loan would part-fund the needs of the company to meet its expansion plans and overseas investments. According to guidelines issued by the Reserve Bank of India, companies can use the proceeds of ECB only for meeting forex requirements for capital expenditure and other overseas investment purposes. Accordingly, the RBI had given a go ahead to the company to proceed with the draw-down, the release said.