India Inc raises over $3.5 bn in Jan via ECBs, FCCBs
Mumbai: India Inc raised over USD 3.51 billion from overseas markets in January through external commercial borrowings and foreign currency convertible bonds.
In December, the Indian companies had raised USD 1.15 billion through the ECB and FCCB route, a RBI data showed.
Of the total 69 companies raising money from overseas market during the month, 57 firms raised about USD 637.85 million through the automatic route which does not require approval from the Reserve Bank of India or the government, the data said.
Under the approval route, 12 companies raised around USD 2.87 billion through ECBs, the data showed.
Interglobe Aviation Ltd raised USD 849.47 million through approval route for import of capital goods and Export-Import Bank of India raised USD 750 million via approval route for onward or sub-lending.
Power Grid Corporation of India raised USD 500 million for its power project and Rural Electrification Corporation Ltd. raised USD 250 million for on-lending to power projects, via approval route.
Larsen & Toubro Ltd raised USD 200 million via approval route for refinancing of earlier ECB and Essar Steel India Ltd raised USD 125 million for refinancing of the rupee loans.
Through the automatic route, Riddhi Siddhi Corn Process raised USD 64.43 million for its modernisation projects and AMBA River Coke Ltd raised USD 58 million for modernisation.
External Commercial Borrowings not covered under the automatic route come under the approval route on a case-by -case basis by RBI.
Indian firms use ECBs for the need of their additional funding so as to use resources which are available domestically.
FCCBs also rule under the same norms as the ECBs.