India Inc raises $2.7 b through overseas debt

Around 35 companies raised over $1.93 billion through the automatic route, which does not require RBI or the government’s approval, for various projects, while around $773 million was raised by four firms under the approval route, according to RBI data.

Hindustan Petroleum Corporation raised $400 million through External Commercial Borrowings (ECBs) for its modernisation project during the month.

Infrastructure firm SP Jammu Udhampur Highway Pvt Ltd raised $350 million via ECBs for its road projects.

Corporates, registered under the Companies Act 1956, can access ECBs up to $500 million in a financial year, under the automatic route. The ECB, which is not covered by the automatic route, is considered under the approval route on a case-by-case basis by RBI.

ECBs are used as an additional source of funding by Indian corporates to augment resources available domestically. Foreign Currency Convertible Bonds (FCCBs) are also governed by norms similar to ECBs.

Other major fund raisings in January under the automatic route were done by Aircel which raised a total of $355 million in two tranches of ECBs for import of capital goods, while Dishnet Wireless raised $345 million.

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