Indian companies file $2.82 billion ECB plans with RBI in February 2025

Indian companies, including non-banking financial companies (NBFCs), filed proposals in February 2025 with the Reserve Bank of India (RBI) to raise $2.82 billion through External Commercial Borrowings (ECBs).

 

Of this, the intent for fund-raising through the automatic route amounted to $2.62 billion, and that via the approval route was $197.4 million, according to RBI data.

 

Among the prominent firms that filed intent in February 2025 with the RBI is Tata Steel Ltd, for $750 million, for overseas investment in joint ventures and wholly owned subsidiaries. The funding from commercial banks has a maturity of six years.

 

Varanasi Aurangabad NH-2 Tollway Private Ltd is raising money through two ECB lines — one for infrastructure development worth $180.2 million and another loan worth $190.99 million for refinancing rupee loans. JSW Cement plans to raise $92.85 million to refinance its earlier ECB.

 

Among NBFCs, Mahindra & Mahindra Financial Services filed an intent to raise up to $150 million from banks through a loan with a three-year maturity. REC, a public sector financial institution, filed to raise $197.4 million for on-lending purposes.

 

According to RBI data, ECB registrations ($47.3 billion) and disbursements ($42.3 billion) during April 2024 – January 2025, on a cumulative basis, were significantly higher than those recorded in the corresponding period of the previous year.

 

ECB outflows due to principal repayments stood at $23.9 billion during this period, resulting in robust net inflows of $18.4 billion — more than twice the level observed in the corresponding period of the previous year.

 

Of the total ECBs registered during April 2024 – January 2025, nearly 44 per cent were intended for capital expenditure purposes.