SBI to raise around $600 mn in ECBs

SBI to raise around $600 mn in ECBs Mumbai: State Bank of India (SBI) Tuesday said it has an external commercial borrowing (ECB) pipeline from corporates of up to USD 600 million.

"We have a pipeline of USD 500-600 million," SBI Managing Director (International Banking) Hemant Contractor told reporters here when asked about the pipeline from corporates for their ECB requirements.

The amount will get raised in the next three to four months, he added.

An external commercial borrowing (ECB) is an instrument used in India to facilitate access to foreign money by Indian corporations and public sector undertakings.

The country's largest lender raised USD 1 billion through an international bond sale last week at a competitive coupon of 3.25 percent and the money will be deployed to fund clients' overseas requirements, he said.

Due to the prevailing high interest rates in the country, many companies are planing to convert rupee loans into dollar debt to save on interest costs. Last week, Essar Steel said it was working on converting its rupee debt worth about Rs 20,000 crore into forex loans.

Domestic corporates are also raising forex debt to fund their overseas expansion as the domestic investment climate remains non-conducive.

PTI