India Inc's foreign borrowings drop 47% to $1.75 bn in August: RBI data

India Inc's foreign borrowings fell by over 47 per cent in August this year to $1.75 billion, data from the Reserve Bank showed on Monday.

The domestic companies had borrowed a total of $3.32 billion from overseas markets in August 2019, by way of external commercial borrowings (ECBs).

Of the total borrowings from overseas sources during the month under review, $1.61 billion was raised through ECBs, while the rest $145.74 million was raised by issuing rupee denominated bonds (RDBs) or masala bonds, showed the RBI's 'Data on ECB/FCCB for the month of August 2020'.

Splitting the data in the ECB category, it said a total of $1.57 billion was raised by various companies through the automatic route, while the rest $35.93 million came in through the approval route.

The major borrowers in the automatic route of ECB included Reliance Sibur Elastomers, a manufacturer of chemicals and chemical products, which raised $339.42 million for refinancing of an earlier ECB.

Vijayapura Tollway raised $160 million for infrastructure development and China Steel Corporation India Private Limited $104.5 million for refinancing of an earlier ECB.

BMW India Financial Services raised $88.72 million for on-lending purpose; Birla Carbon India (chemicals and products manufacturer) $50 million for refinancing of rupee loans; and Wistron Infocomm Manufacturing (India) Private Limited (manufacturer of computer, electronic and optical products) $45 million for import of capital goods.

Suzlon Energy Limited was the lone borrower through the approval route ($35.93 million).

A total of eight firms issued masala bonds or RDBs, which included Ostro Mahawind Power Private Limited raising $78.6 million and Ostro Renewables Pvt Ltd $20.01 million.

Heramba Renewables Limited and Shreyas Solarfarms Limited raised $13.33 million and 13.32 million respectively, as per the data.

No money was raised through masala bonds in August 2019.