India Inc raises $1 bn via ECBs, FCCBs

Mumbai, Jan 4 | Updated: Jan 5 2006, 06:14am hrs
Indicating that India Inc is investing heavily in greenfield projects and is looking increasingly towards the overseas market for raising funds about 49 corporates from India Inc raised close to $1 billion in the form of external commercial borrowings (ECBs) or foreign currency convertible bonds (FCCBs) during November 2005. According to the data released by the Reserve Bank of India (RBI), at least 15 corporates raised close to $383 million for the purpose of project financing. A majority of these are greenfield projects.

Meanwhile, out of the total amount of $967.5 million mobilised from overseas during November, loans aggregating $951.5 million were raised through the automatic route, while, another $16 million was raised through the approval route of the RBI.

Among the corporates that raised big-ticket loans under the automatic route, Suzuki Powertrain India Ltd raised a term loan of $138 million via ECB for financing a new project. Maruti Suzuki Automobiles India Ltd was also seen borrowing through the ECB route. It raised $102 million for 7.3 years, also for project financing. Meanwhile, in two other separate exercises, Reliance Industries Ltd (RIL) borrowed a total of $211 million for refinancing old loans. Both borrowings are for a period of five years, said the RBI.

Non-banking finance company (NBFC), Srei Infrastructure Finance Ltd raised a total of $6.7 million via ECBs under the RBIs approval route. The funds raised for a little over 8 years were for the purpose of import of capital goods, the RBI said. Tasty Bite Eatables Ltd was at the approval window, for raising $8 million for modernising of existing facilities.

Money Game
15 corporates garner close to $383 million for project financing
Loans up to $951.5 million were raised through the automatic route
$16 million was raised through the approval route of the RBI