India Inc raised nearly $1.09 billion overseas during August, 2010 via external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), according to the Reserve Bank data. Comparing with $1.16 billion it had raised in July 2010, raising resources through ECB has fallen by 6% in August. In August 2009, around $1.09 billion was raised .
Around 50 companies raised $87,44,95,019 through the automatic route, while $21,49,12,149 was raised by five companies under the approval route. Essar Shipping Ports & Logistics raised $280 million under the automatic route for its overseas acquisitions. Adani Power raised $175 million in two tranches under the automatic route.
ECBs are used as additional source of funding by Indian corporates to build capacity and raise fresh investments to augment the resources available domestically. Corporates, registered under the Companies Act, 1956, can access ECBs, up to $500 million in a financial year, under the automatic route. The ECB is considered under the approval route on a case-by-case basis by RBI. Foreign currency convertible bonds are also governed by norms similar to ECBs.