Indian cos raise $5.08 bn in Mar via ECBs, FCCBs
Mumbai: Indian companies raised about USD 5.08 billion from overseas markets in March, as against USD 2.34 billion through ECBs and Foreign Currency Convertible Bonds in the previous month.
Of 102 companies that raised money from overseas markets during March, 86 firms raised USD 3.4 billion through the automatic route -- which does not require approval from the Reserve Bank or the government -- as per RBI data.
Besides, 16 companies raised around USD 1.6 billion through External Commercial Borrowings under the approval route.
State-owned refinery Hindustan Petroleum Corporation Ltd raised USD 400 million for modernisation, while Indian Oil Corporation mopped up USD 120 million for import of Capital Goods.
The largest overseas fund raiser during the month was Bharti Airtel Ltd which raised USD 434 million, while Tata Steel and Wipro raised USD 200 million each for procuring capital goods.
Under the approval route, ONGC Videsh Ltd raised USD 900 million for overseas acquisition, while Essar Oil Ltd raised USD 275 million for refinancing of rupee loans. At the same time, Rural Electrification Corporation raised USD 250 million for on-lending to power sector.
Most of the developed world, especially the 17-nation euro zone nations, continue to grapple with debt crisis. The gloomy economic scenario has forced many of these nations to embrace easy money (low interest rate) policy, which in turn is considered to be a key factor in fuelling high inflationary trends in emerging markets including India.
To tackle rising inflation, some of the central banks in emerging economies are adopting high interest rate regime that is also making funding costlier compared to the developed world.