Corporates are planning to raise over $200 million by March-end this year through the ECB route. Some of the major corporate houses like Tisco, Raymond and Grasim are in the process of raising overseas debt.
According to a source, ANZ Investment Bank has bagged the mandate of raising a total of $120 million. Of these, Tisco is set to sign a deal to raise $50 million as syndicated loan on March 13, the source said.
Other corporates seeking to raise funds are Grasim ($18 million), Raymond ($18 million), Crompton Greaves ($18 million), and Bennett, Coleman & Co ($15 million). A source said while Tisco is mopping up the funds for its phase IV modernisation project at Jamshedpur, Bihar, Bennett, Coleman & Co is raising funds for new machineries.
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According to estimates, about $4-6 billion are scheduled to be raised through the ECB route in this calendar year.
About $4 billion were raised through the ECB route between January and December 1996. Of these, the market share of ANZ Investment Bank (the current market leader) was about 25 per cent, in the region of about $1 billion.
According to a source, in the first two months of this calendar year the investment banking major has already raised $200 million, and is expected to raise close to another $120 million by the end of March. Its annual target is to raise more than $1 billion by December 1997.
A source said that the estimate of raising $6 billion (on the higher side) from the overseas markets are quite conservative and the actual figure could be even higher. "Last year, the domestic debt market had flourished because of dull sentiments in the equity segment. However, currently the stock markets are on an upswing and raising funds by way of public issue of bonds may not be feasible," the source said.
Therefore, corporates willing to raise funds with low interest rates will increasingly opt for theexternal commercial borrowing route, the source added.
According to estimates, nearly $4-6 billion is scheduled to be raised through the ECB route in this calendar year