India Inc files ECB plans worth $ 2.83 bn in November, shows RBI data

Indian firms, including non-banking financial companies, have filed proposals in November 2024 with the Reserve Bank of India (RBI) to raise $2.83 billion through External Commercial Borrowings (ECBs).

 

Out of this, the intent for fund raising through the automatic route amounted to $1.39 billion and that via the approval route was $ 1.43 billion, according to RBI data.

 

Among the prominent firms which have filed intent in November with the RBI include, Reliance Industries Ltd (RIL) for $ one billion for sourcing of capital goods. RIL also filed for $ 225 million intent for refinancing of earlier ECB. Indian Oil Corporation for $ 300 million for working capital requirements.

 

Large NBFC Bajaj Finance Ltd filed for raising $ 250 million from multilateral financial institution.  Another financial services company Hero Fincorp Ltd was looking at $ 125 million from commercial banks for on-lending activity and Paisalo Digital Ltd for raising $ 128 million from international capital market. Interglobe Aviation Ltd has filed for raising $ 220 million to import capital goods.

 

Government owned Export Import Bank of India has raised $1 billion through 10-year senior secured dollar bonds, marking the first dollar bond issuance by an Indian entity in 2025. The bonds were issued at the tightest-ever spread of 100 basis points over 10-year US Treasuries.

 

The registrations for ECBs by Indian companies almost doubled to $49.2 billion in the year ended March 2024 (FY24) from $26.6 billion in FY23. The disbursement in ECBs was also over 60 per cent higher at $38.4 billion in FY24 compared to $23.8 billion in FY23, according to RBI.