India Inc raises USD 2bn in April through ECBs, FCCBs

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India Inc raises USD 2bn in April through ECBs, FCCBs

India Inc raised over USD 2.06 billion from overseas markets in April through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), the Reserve Bank said.

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India Inc raised over USD 2.06 billion from overseas markets in April through external commercial borrowings (ECBs) and foreign currency convertible
bonds (FCCBs), the Reserve Bank said.

Around 55 companies raised over USD 1.54 billion for various projects through the automatic route, which does not require RBI or the government approval.

Another USD 520 million were raised through the approval route, according to the RBI data.

State-sector Shipping Corporation of India raised USD 215.52 million through ECBs for import of capital goods in April.

Suzlon Energy mopped up USD 200 million through ECBs during the month for its overseas acquisition. Balkrishna Industries raised USD 175 million for funding new projects.

Corporates, registered under the Companies Act, 1956, can access ECBs up to USD 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 April using the automatic route were undertaken by JSW Steel which raised USD 166.77 million its modernisation projects and Dhariwal Infrastructure which mopped up USD 99 million.

Under the approval route, Export Import Bank of India raised a total of USD 520 million in three tranches for sub-lending