ECBs sharply down in Oct over Fed taper worries

Written by fe Bureau | Mumbai | Updated: Dec 17 2013, 08:49am hrs
Indian companies raised $1.9 billion through external commercial borrowings (ECB) in October, sharply down

from $4.3 billion raised a year ago as worries over a likely tapering of the US Federal Reserve's quantitative easing made overseas borrowing dearer.

In September, companies had mopped up $3.3 billion through ECBs, RBI data showed. The jump in ECBs in September was mainly due to a cumulative fund-raising of $2.1 billion by RIL. Out of the $1.9 billion raised in October, nearly half was raised to refinance earlier loans. Companies borrowed $251 million to finance imports while $500 million was raised by BPCL for working capital purposes.

A chunk of the money raised was through the approval route under which companies require the RBI's approval.

Tata Sons raised $150 million to refinance earlier ECBs while Tata Chemicals raised $190 million to finance imports. Between April and October, companies have raised $16 billion through ECBs, which is lower than $19 billion raised in the corresponding period a year ago.