The foreign borrowing of India Inc dropped by over 47 percent in August 2020 to $1.75 billion, shows Reserve Bank data released on October 5.
Previously in June 2020, India Inc's borrowing from foreign markets fell by over 81 percent to $1.02 billion, while in April 2020, it plunged by 68.5 percent to $996.04 million. In April 2019, India Inc had raised as much as $3.16 billion from the overseas market.
The apex bank data reveals that in August 2019, domestic companies had borrowed $3.32 billion from the overseas market through external commercial borrowings (ECBs).
India Inc's foreign borrowing jumps over 2-fold to $3.55 bn in May.
As per the RBI's 'Data on ECB/FCCB for the month of August 2020', $1.61 billion was raised through ECBs, while the rest $145.74 million was raised by issuing masala bonds or rupee dominated bonds (RDBs). The RBI further added that $1.57 billion was raised by various firms through the automated route, while the rest $35.93 million arrived via the approval route.
Major borrowers that chose the automated route of ECB include Reliance Sibur Elastomers, as it raised $339.42 million for the refinancing of an earlier ECB. Other borrowers are Vijayapura Tollway ($160 million), China Steel Corporation India Private Limited ($104.5 million), BMW India Financial Services $88.72 million), Birla Carbon India ($50 million) and Wistron Infocomm Manufacturing (India) Private Limited ($45 million). Suzlon Energy Limited was the lone borrower which raised $35.93 million through the approval route.
Apart from this, eight firms issued masala bonds or RDBs to raise for the refinancing of an earlier ECB. Ostro Mahawind Power Private Limited raised $78.6 million and Ostro Renewables Pvt Ltd raised $20.01 million. Heramba Renewables Limited and Shreyas Solarfarms Limited raised $13.33 million and $13.32 million respectively, shows RBI data.
Meanwhile, no money was raised via masala bonds in August 2019.
Disclaimer: “Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.”
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!
