The slow but steady economic recovery has also led to revival in the external commercial borrowing market (ECB) in May.
The RBI data released on revealed that Indian corporates have borrowed $494 million by way of ECBs and foreign currency convertible bonds (FCCB) in May, as against $298 million, in April 2009.
Suzlon Energy Ltd raised a total of $61 million through FCCBs, through the approval route. The first FCCB was raised for $35 million and the second for $25 million, for a maturity period of 3 years and 1 month and 3 years and 5 months, respectively, for buy-back of FCCBs, said the RBI. BOC India Ltd raised $79 million through ECBs, for import of capital goods with a maturity period of 7 years. In April 2009, Shipping Corporation Of India Ltd raised $35 million for rupee expenditure for a maturity period of 11 years and 11 months.
Corporates raised $275 million through the automatic route, while $23 million was raised through approval route. However, none of the companies opted to raise funds through FCCBs, during this period.
During April and May 2008, Indian companies had raised $1.16 billion and $1.28 billion, respectively, by way of ECBs and FCCBs.