Indian Firms Raise $2.6b Foreign Debt

Indian corporates and financial institutions have raised a sum of $ 2.6 billion during the first three quarters of the year 1997 by issuing debt securities in the international markets.

Net issues by Indian corporates in the first three quarters have been to the tune of $ 1 billion, $ 500 million and $ 600 million respectively. On the other hand the financial institutions raised a sum of $ 100 million and $ 300 million in the second quarter and third quarter of 1997.

During the year 1995 net issues by Indian corporates and financial institutions was $ 300 million. In the following year i.e. in 1996, these entities raised a net sum of $ 1.6 billion.

 

The above numbers are as per the figures published in the International Banking and Financial Market Developments published by the Bank of International Settlements (BIS).

The figures are reported to the BIS by Indias central bank, Reserve Bank of India.

The BIS report on the developments in the international banking and financial markets also provides figures on the external positions of central banks in individual reporting countries, announced international syndicated credit facilities by nationality of borrower, international debt securities by country of residence, by type, sector and currency and statistics on the derivatives and swaps markets by currency and type of counterparty.

The outstanding amount of debt securities issued by Indian corporates in the international market has increased steadily over the last couple of years; from $ 3.8 billion in December 1995 to $ 5.1 billion by December 1996 to $ 6.7 billion by June 1997 and then to $ 7.5 billion by September 1997.

The quantum of resources raised through international syndicated credit facilities in the first three quarters of 1997 was $ 700 million, $ 800 million and $ 800 million respectively.