Indian companies filed ECB intent worth $9.54 billion in December 2024

Indian companies, including non-banking financial companies (NBFCs), filed proposals in December 2024 with the Reserve Bank of India (RBI) to raise $9.54 billion through External Commercial Borrowings (ECBs).

 

Of this, the intent for fund-raising through the automatic route amounted to $6.23 billion, while that via the approval route stood at $3.3 billion, according to RBI data.

 

Among the prominent firms that filed intent with the RBI in December 2024 are Reliance Industries Ltd (RIL) for $2.97 billion to refinance earlier ECBs, and Indian Oil Corporation for $530 million for refinancing old ECBs, working capital, and general corporate purposes. JSW Steel Ltd plans to raise $300 million for modernisation, with the ECBs having a tenure of five years and three months. JSW Steel Coated Products Ltd is raising $80 million to refinance earlier ECBs.

 

Large NBFC Tata Capital Ltd filed to raise over $750 million from the international capital market for on-lending operations. Tata Capital Housing Finance filed for over $200 million. Another financial services company, REC Ltd, is looking to raise over $430 million from the overseas branch of an Indian commercial bank for on-lending activities. Shriram Finance Ltd is raising close to $1.5 billion from a commercial bank for on-lending operations.

 

According to the RBI’s State of the Economy report (January 2024 bulletin), on a cumulative basis, ECB registrations ($33.8 billion) and disbursements ($30.9 billion) during April–November 2024 were higher compared to the corresponding period last year. Adjusting for ECB outflows on account of principal repayment of $17.4 billion, net ECB inflows ($13.5 billion) during the current financial year were more than double compared to a year ago ($5.6 billion).

 

Registrations for ECBs by Indian companies almost doubled to $49.2 billion in the year ended March 2024 (FY24) from $26.6 billion in FY23. Disbursement in ECBs was also over 60 per cent higher at $38.4 billion in FY24 compared to $23.8 billion in FY23, according to the RBI.