India Inc raises $3.33 bn in June via ECBs, FCCBs

India Inc raised over $3.33 billion from overseas markets in June through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), the Reserve Bank of India (RBI) said.

Around 75 companies raised over $2.34 billion for various projects through the automatic route, which does not require RBI or the government approval.

Another $992 million were raised through the approval route, according to the RBI data.

Private sector giant Adani Power raised $500 million through ECBs for power projects in June.

Dishnet Wireless mopped up $200 million through ECBs during the month for import of capital goods and telecom firm Aircel $181 million for the same purpose.

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.

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

Other major fund raisings in June using the automatic route came from GAIL (India) which raised $150 million, while JSW Steel mopped up $107 million for its modernisation projects.

Under the approval route, Aircel raised $992 million for refinancing its rupee loans during June.