India Inc taps $4.16 b thru ECBs
India Inc raised over US$4.16 billion from overseas markets in July through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs).
Around 85 companies raised over US$3.67 billion for various projects through the automatic route, which does not require RBI’s or the government approval.
Another US$492 million were raised through the approval route, according to RBI data. Private sector giant Reliance Industries raised US$1.09 billion through ECBs for refinancing of old loans.
State-run power player NTPC mopped up US$500 million through ECBs during the month for new investments and Indian Oil Corporation also raised an equal amount for import of capital goods.
Corporates, registered under the Companies Act, 1956, can access ECBs up to US$500 million in a financial year under the automatic route.
Foreign Currency Convertible Bonds (FCCBs) are also governed by norms similar to ECBs.
Other major fund raised in July using the automatic route came from Bharat Aluminium which raised US$200 million for new projects, while Mundra Port & Special Economic Zone mopped up US$150 million for its port project.
Under the approval route in July, telecom firms Vodafone Essar Mobile Services and Vodafone Essar raised US$200 million and US$110 million, respectively, for refinancing their rupee loans.
