India Inc raises $3.71 bn in July via ECB, FCCB routes

India Inc raised over USD 3.71 billion from overseas markets in July through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs). In June, the Indian companies had raised USD 1.95 billion through the ECB and FCCB route.

Under the automatic route, as many as 72 companies raised USD 1.39 billion through the automatic route which does not require approval from the Reserve Bank of India (RBI) or the government, data on the RBI website showed today. Under the approval route, ten companies raised around USD 2.32 billion through ECBs/FCCBs.

Reliance Industries raised a total of USD 2.15 billion in two separate tranches of USD 2 billion and USD 150 million through the ECB route for import of capital goods under the approval route. Also under the approval route, Delhi International Airport raised USD 108 million for refinancing of rupee loans and Datamatics Global Services raised USD 10 million for overseas acquisition.

Under the automatic route, Indian Oil Corporation raised USD 500 million for rupee expenditure, Dr Reddy's Laboratories raised USD 150 million for overseas acquisition and NTPC Limited raised USD 124.29 million power projects. Ultratech Cement raised USD 50 million for modernisation and Kindle Engineering & Constructions raised USD 48 million for import of capital goods.

Shreya Life Sciences and Honda Cars India raised USD 30 million each for overseas expenditure and rupee expenditure respectively under the automatic route. Indian firms use ECBs for the need of their additional funding so as to use resources which are available domestically. FCCBs also come under the same norms as ECBs.

External Commercial Borrowings not covered under the automatic route come under the approval route on a case-by-case basis by RBI.