External Commercial Borrowings

State-owned India Infrastructure Finance Company Ltd (IIFCL) on Monday said it plans to raise about Rs 8,000 crore from borrowing, including from overseas institutions, during the January-March quarter. "We had planned to raise Rs 29,000 crore during the current fiscal to fund business growth of 20 per cent. Out of that 75 per cent have been mobilised in the three quarters and 25 per cent would be done during this quarter," IIFCL Managing Director PR Jaishankar said on the sidelines of 20th foundation day of the company. The company plans to raise USD 200 million through external commercial borrowing during this quarter, he said. Besides, he said, the company has finalised blended finance of USD 600 million with the Asian Development Bank and Korean Exim Bank to expand its investor base and lower the borrowing cost. First tranche of this, he said, about USD 200 million may come through this fiscal while the remaining may come in only in 2025-26. "We are in touch with ADB, World Ba

Analysis of the end-use of registrations showed that ECBs for import or local sourcing of capital goods were pegged at $1.3 billion in H1FY25, sharply down from $9.4 billion in H1FY24

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

John Energy is currently facing various litigations initiated by ICICI Bank and other lenders before NCLAT

Resource mobilisation challenge, regulatory nudge to weigh on growth

Value doubles to $49.2 bn as firms raise capital for modernisation projects and infrastructure development

Company aims for strategic adjustments to benefit from the anticipated softening of interest rates

HDFC Credila, an erstwhile subsidiary of HDFC Limited (now HDFC Bank), focuses on the education loans business

Reserve Bank of India will have to continue to monitor the movements and be nimble to spot volatility in both directions and intervene selectively to reduce excess noise

L&T added, these funds would be raised in the form of external commercial borrowings, term loans, non-convertible debentures, or any other instrument as may be appropriate

Overseas borrowing by Indian corporates and high-rated non-banking financial companies (NBFCs) is likely to grow as hedging costs are low and there is a softening bias of global interest rates

External commercial borrowing (ECB) refers to the borrowing of funds by Indian companies from foreign sources in the form of loans, bonds, or other financial instruments

Micro finance firm Spandana Sphoorty Financial Limited on Thursday said it raised USD 20 million from External Commercial Borrowings (ECBs) to fund business growth. The company has raised External Commercial Borrowings of USD 20 million with a tenure of 36 months, Spandana Sphoorty Financial said in a regulatory filing. Last year, RBI had imposed a monetary penalty on Spandana Sphoorty for the company's failure to adhere to pricing of credit guidelines for Non-Banking Financial Company-Micro Finance Institutions. In furtherance to the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the RBI directions, the RBI had said.

Approvals may be $30-35 bn in FY23, says ICRA

Additionally, its public issue of non-convertible debentures (NCDs) worth up to 5 billion Indian rupees ($61.4 million) will launch on Nov. 14

The loans, which are likely to have a five-year term, are anticipated to be priced 130-150 basis points higher than the Secured Overnight Financing Rate (SOFR), a benchmark rate used around the world

India Inc's foreign commercial borrowings in August this year rose by nearly 4.6 per cent to USD 2.98 billion, according to the RBI data. In August 2021, the Indian businesses borrowed USD 2.85 billion in the form of external commercial borrowings. Of the total borrowings in August this year, over USD 2.47 billion was through the automatic route of raising funds from foreign sources. While more than USD 502.79 million was raised by way of issuing rupee denominated bonds (RDBs) or masala bonds. Among the major borrowers include mortgage lender HDFC Ltd USD 1.1 billion for the purpose of sub-lending; FS India Solar Ventures USD 500 million for a new project; Fullerton India Credit Co Ltd USD 350 million for sub-lending and Toyota Financial Services USD 50 million for refinancing of Rupee loans. Among others, IIFL Finance raised USD 50 million for refinancing of earlier ECB; Tata Sia Airlines raised USD 36 million for import of capital goods; Flender Drvies USD 31.37 million for worki

In the short and medium term, chief financial officers are advising companies to take the right kind of derivatives products depending on their exposure

Among individual shares, Bank of Baroda, Canara Bank, State Bank of India, Indian Bank, and Union Bank of India soared between 21 per cent and 34 per cent during the period

Gurgaon-based ReNew Power has raised a $1-billion project loan through external commercial borrowings, tying up with 12 international banks for the finance.