India firms raise USD 4.16 bn in July through ECBs
India Inc raised over USD 4.16 billion from overseas markets in July through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs).
September 03, 2011 / 10:41 IST
India Inc raised over USD 4.16 billion from overseas markets in July through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs).
Around 85 companies raised over USD 3.67 billion for various projects through the automatic route, which does not require RBI's or the government approval.Another USD 492 million were raised through the approval route, according to the RBI data.Private sector giant Reliance Industries raised USD 1.09 billion through ECBs for refinancing of old loans.State-run power player NTPC mopped up USD 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 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 the 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 raised in July using the automatic route came from Bharat Aluminium which raised USD 200 million for new projects, while Mundra Port & Special Economic Zone mopped up USD 150 million for its port project.Under the approval route in July, telecom firms Vodafone Essar Mobile Services and Vodafone Essar raised USD 200 million and USD 110 million, respectively, for refinancing their rupee loans. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
