Corporates raise $2 bn ECBs in first quarter

Indian companies raised over $2 billion through external commercial borrowings (ECB) in the first quarter of 2005, against $1.78 billion in the same period of 2004.

Corporates borrowed $1.1 billion via syndicated loans and $ 973 million through issues of bonds and convertible bonds during January-March 2005.

The corporates which raised funds overseas include Tata Power ($200 million), Reliance Industries ($152 million), Tata Chemicals (150 million), Jaiprakash Associates ($100 million), Glenmark ($70 million) and DCM Sriram Consolidated ($30 million).

According to market data released by Bloomberg, debt raised in the domestic market touched Rs 16,300 crore during January-March 2005 and another Rs 2,100 crore was mobilised through initial public offerings (IPOs).

Food Corporation of India raised the highest domestic debt during the quarter at Rs 4,024 crore. Housing Development Finance Corporation (HDFC) was second with resource mobilisation of Rs 2,000 crore.

Bloomberg's ranking of underwriters puts UTI Bank at the number one slot in terms of its market share of domestic debt raisings arranged in the first quarter of 2005. The bank's market share was 15.2 per cent, helping 31 corporates mobilise an aggregate of Rs 2,475 crore. ICICI Securities was ranked second with a 13.3 per cent market share by arranging debt of Rs 2,167 crore in 35 deals.

In arranging overseas bond issues, JP Morgan was the leader with a 27.8 per share having arranged $270 million in three deals. Calyon of France ranked second with a 21.9 per cent share. It arranged $213 million in two deals.

In terms of arrangement of foreign currency syndicated loans, Calyon topped the chart with a 13.6 per cent share. It helped five corporates raise $150 million.

ABN Amro was at the second spot with a 11.3 per cent share by arranging $125 million in four deals.