Better business environment ups India ECB borrowings at $4.3 bln in February

Written by PTI | Mumbai | Updated: Apr 10 2014, 01:18am hrs
Showing signs of uptick and confidence in Indian business environment, external commercial borrowing (ECB) by Indian companies rose to USD 4.3 billion in February 2014.

The borrowing by Indian firms via this route were at USD 1.79 billion in the previous month.

According to data provided by the Reserve Bank today, the borrowings by domestic companies through ECB or Foreign Currency Convertible Bonds (FCCB) for the month of February were a combination of automatic and approval route.

"It is clearly a reflection that global investment confidence is getting accepted into the Indian businesses," said Jagannadham Thunuguntla, Chief Strategist and Head of Research of SMC Global Securities Limited.

As per the data, as much as USD 3.64 billion was raised through approval route during the month, while USD 661.76 million was raised by the way of automatic route.

Through the approval route, ONGC Videsh Limited in two separate tranches raised USD 1.76 billion and USD 725 million for overseas acquisitions.

Among others who mobilised funds during February through this route, Indian Railway Finance Corporation Limited borrowed USD 500 million through this route for railways work, while mortgage lender HDFC Ltd raised USD 300 million for on-lending to low-cost housing projects.

HPCL-Mittal Energy Limited borrowed a total USD 274.69 million in three separate tranches for refinancing of earlier ECB.

In the automatic route category, state-owned Bharat Petroleum Corporation Limited raised USD 300 million for working capital requirement and Lulu Convention and Exhibition Centre Private Limited raised USD 98 million for its new project.

Among others, Panama Wind Energy Godawari Private Limited raised USD 72 million for power requirements, Birla Corp USD 70 million for refinancing of earlier ECB and Renault India USD 27 million for its new project.

JSW Steel Limited raised a total of USD 21.25 million in two separate tranches for import of capital goods, Claris Lifesciences raised USD 15 million for modernisation and Honda Cars India USD 10 million for rupee expenditure.

India's ECB till Feb in fiscal 2013-14 stood at USD 29.67 billion.