Indian corporates have received approvals to raise just $696 million in May 2010 by way of external commercial borrowings (ECBs) and foreign convertible currency bonds (FCCBs), compared with $2.82 billion in April 2010.
According to data released by the Reserve Bank of India (RBI) on Thursday, 53 companies have been given approvals to raise funds via ECBs and FCCBs. Caterpillar India Private Ltd has been given an approval to raise $180 million for the import of capital goods for a maturity period of 8 years and 7 months. At the same time, Fortis Healthcare has received an approval to raise $ 100 million through an FCCB for an overseas acquisition for a maturity period of five years.
A treasury head at a foreign bank says, ?Most companies had approached the central bank for permission in April since they needed funds to make payments for 3G licences.? Telecom companies, who won licences paid the Centre Rs 67,700 crore for 3G spectrum this month. In April 2010, Vodafone Group alone has been given an approval to raise $1.48 billion by way of ECBs for the purpose of rupee expenditure with a maturity of six years and six months.