India Inc raised $2.2 bn ECBs in the first half

Indian corporates have raised around $2.2 billion from the overseas market via external commercial borrowings (ECB's) in the first half of the current fiscal as against $3.3 billion in the last fiscal.

During April to September the registrations received by RBI for ECBs stood at around $5.5 billion, said an RBI official.

The spurt in ECB's is mainly on account of simplification of norms by the RBI, demand for funds, access to cheaper funds and lower interest rates, he added.

Among the ones that raised loans overseas are Reliance Infocomm's $ 250 million syndicate loan, Indian Railway Finance Corporation's $ 100 million loan, Exim Bank's $ 250 million maiden bond issue, Bharat Petroleum Corporation's $ 107 million as well as Ashok Leyland, Zee Telefilms, Bharti Cellular National Hydroelectric Corporation, and the Power Finance Corporation.

Tata Group, the Aditya Birla Group, and Bharti Televentures as well as a host of other large companies recently concluded their borrowing.

Among the domestic institutions, State Bank of India (SBI), Vijaya Bank, IDBI Bank, ICICI Bank and Union Bank of India have raised syndicated loans overseas in the first six months of the current fiscal. SBI raised $500 million , while ICICI Bank has raised around $ 400 million this year.

A host of other banks such as HDFC Bank, Canara Bank, UTI Bank, ING Vysya Bank have raised 1 to 3 year money from the overseas syndication market.