In August, Indian companies raised $2.36 billion through external commercial borrowing (ECB) and foreign currency convertible bonds (FCCBs). These were aimed at funding modernisation plans, foreign acquisitions and importing capital goods.
Of the amount raised, $1.21 billion was through the automatic route, while $1.15 billion was raised through the approval route that requires case-by-case approval by the Reserve Bank of India.
Power Grid Corporation accounted for external borrowings of $270 million; the tenure of the loan is 14 years and nine months.
Under the approval route, Power Finance Corporation raised $ 250 million for three years.
In August, there was a single FCCB issuance—Tulip Telecom’s $100-million issue for five years.