India Inc raises $2 bn in April through ECBs, FCCBs

India Inc raised over $2.06 billion from overseas markets in April through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), the Reserve Bank of India (RBI) said.

Around 55 companies raised over $1.54 billion for various projects through the automatic route, which does not require RBI or the government approval.

Another $520 million were raised through the approval route, according to the RBI data.

State-sector Shipping Corporation of India raised $215.52 million through ECBs for import of capital goods in April.

Suzlon Energy mopped up $200 million through ECBs during the month for its overseas acquisition. Balkrishna Industries raised $175 million for funding new projects.

Corporates, registered under the Companies Act, 1956, can access ECBs up to $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 RBI.

ECBs are used as an additional source of funding by Indian corporates to augment resources available domestically.

FCCBs are also governed by norms similar to ECBs.

Other major fund raisings in April using the automatic route were undertaken by JSW Steel which raised $166.77 million its modernisation projects and Dhariwal Infrastructure which mopped up $99 million.

Under the approval route, Export Import Bank of India raised a total of $520 million in three tranches for sub-lending.