India Inc raises $800 mn in Oct via ECBs/FCCBs

India Inc raised nearly $800 million overseas during October this year via External Commercial Borrowings (ECBs) and Foreign Currency Convertible Bonds (FCCBs), according to the Reserve Bank of India (RBI) data.

Around 50 companies raised $64,17,58,274 through the automatic route for various projects, while $15,79,35,000 was raised by three companies under the approval route.

Nissan Motor India garnered $156 million in ECBs under the automatic route in two tranches as part of its line of credit.

Gitanjali Gems and Jewels raised $110 million under the automatic route for official purposes.

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 the RBI.

ECBs are used as an additional source of funding by Indian corporates to build capacity and raise fresh investments to augment the resources available domestically.

Foreign Currency Convertible Bonds (FCCBs) are also governed by norms similar to ECBs.

Other major fund raisings in October under the automatic route were done by Aurobindo Pharma ($35 million, for modernisation), and Himadri Chemicals & Industries ($34 million, for modernisation).

Under the approval route, SREI Equipment Finance raised $80 million for import of capital goods. Besides, power firm Rural Electrification Corporation raised $70 million for onward lending.