India Inc raises $2.34 bn through ECBs in Feb 2013

To fund modernisation, overseas acquisition, importing capital goods & refinancing of old loans

Indian companies raised $2.34 billion through External Commercial Borrowings (ECBs) and Foreign Currency Convertible Debentures (FCCB’s) in February 2013 to fund modernisation, overseas acquisition, importing capital goods and refinancing of old loans.   

India Inc had raised $3.5 billion in the month of January according to Reserve Bank of India data.

Companies this fiscal till February have raised $30.8 billion compared to $28.9 billion raised last year. In total companies had raised $31.5 billion last financial year.
Out of the total amount raised, $1.08 billion was via the automatic route. $1.26 million was raised through the approval route that requires case-by-case approval by the RBI.

Reliance Industries has emerged as biggest borrower overseas in the February. It raised $800 million to fund capital expenditure via approval route. Loan tenure is 30 years and five months.  

Under approval route Power Finance Corporation raised $250 million for onward lending.
In automatic route National Thermal Power Corporation raised $250 million.

Other major companies which raised money overseas include Gitanjali Gems and IDFC.

Jain Irrigations raised $24 million in five different transaction having different repayment periods for overseas acquisition. Of which it raised $10 million through FCCBs.