India Inc files ECB intent worth $4.84 billion in September: RBI data

Indian corporates, including non-banking financial companies (NBFCs), filed proposals in September 2024 with the Reserve Bank of India (RBI) to raise $4.84 billion through External Commercial Borrowings (ECBs). Of this, the intent for fund-raising through the automatic route amounted to $3.77 billion, while that via the approval route was $1.06 billion, according to RBI data.

 

According to the State of Economy article in the RBI Bulletin (October 2024), net inflows under external commercial borrowings to India moderated to $3.6 billion during April-August 2024, compared with $4.3 billion a year ago. During April-August 2024, both registrations ($20.6 billion) and gross disbursements ($16.1 billion) of ECBs were lower than in the corresponding period last year.

 

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. Disbursements in ECBs were also over 60 per cent higher at $38.4 billion in FY24 compared to $23.8 billion in FY23, according to RBI data.

 

Among the prominent firms that filed intent in September 2024 were Shriram Finance, seeking to raise $750 million through three-year ECBs from the international capital market; state-owned Power Finance Corporation (PFC), which aims to raise $1.06 billion through ECBs of five years and two months from the overseas branches of Indian commercial banks. PFC filed ECB papers for this fund-raising under the approval route.

 

Interglobe Aviation, an air transport player, plans to raise $380 million for importing capital goods from a leasing company. The public sector undertaking Indian Oil Corporation, engaged in the manufacture of coke and refined petroleum products, intends to raise about $300 million through five-year ECBs from the overseas branches of Indian commercial banks.

 

The non-banking finance company Cholamandalam Investment and Finance Company is looking to raise $250 million through three-year ECBs for on-lending operations. Another NBFC, HDB Financial Services, is also planning to raise $250 million via three-year ECBs for on-lending.