Indian Companies Raise $2.06 Billion Via ECB in April.

MUMBAI: Indian companies have raised total foreign loans of over $2.06 billion in April this year through external commercial borrowings and foreign currency convertible bonds, to part finance their various expansion plans, according to the statistics released by the RBI.

This is much less than the $5.63 billion that over 100 companies raised in March. In a statement issued on Thursday, RBI said about 60 companies raised about $1.54 billion overseas in April, through the automatic route, for modernisation of existing facilities and import of capital goods. About three companies raised around $520 million under the approval route.

The RBI releases the ECB data every month reflecting the extent of foreign borrowing that Indian companies do, over and above local loans. The data will be closely watched as after the RBI raised interest rates last week in its latest monetary policy action, Indian companies have been exploring options of raising money overseas to access lower cost of borrowing.

Among the companies mentioned in the RBI data, JSW Steel , the Sajjan Jindal-controlled steel company, borrowed $166.77 million through the automatic route, with a maturity period of 10 years, for modernising its existing manufacturing facilities. Shipping Corp of India raised $215.52 million for import of capital goods. Windpower major Suzlon Energy has borrowed $200 million for overseas acquisition.

Source : economictimes.indiatimes.com