India Inc raised ECBs in Nov to refinance old debt

Over 35 per cent of the $967 million raised overseas in November 2005 was used for refinancing of old debt, according to data released by the Reserve Bank of India (RBI).

The funds were raised through foreign currency convertible bonds (FCCBs) and other forms of external commercial borrowings (ECBs).

A total of 33 companies raised over $950 million through the automatic route and another four companies raised funds after approvals from the RBI. A total of $340 million was raised for refinancing old debt to save on interest costs.

Reliance Industries was the largest issuer of ECBs. The Mukesh Ambani-controlled company raised over $210.24 million to refinance old loans. The maturity of Reliance ECBs is five years.

Export Import Bank of India mopped up $49.74 million for two-years to retire old debt. Suzuki Powertrain India and Maruti Suzuki Automobiles raised $138 million and $102 million respectively, for project expenditure. Welspun Gujarat Stahl Rohren too raised $ 75 million for capital expendiure.

Ballarpur Industries raised $60 million to refinance old debt and also for modernisation and import of capital goods. Chennai-based Orchid Chemicals would use $ 42.5 million to modernise its units.

Four corporates - Srei Infrastructure Finance, Tasty Bite, BASF Polyurethanes and Gravotech Engineering "" raised an aggregate of $15.9 million after approvals of RBI nod.

Mid-Day Multimedia raised $1.19 million for modernising its operations. The RBI has sought clarification from Sundram Bleistahl for the end use of $1 million raised, from Evangelical Social Action Forum for raising $0.12 million and from Newby Teas Overseas Pvt Ltd for raising $0.4 million.