Indian companies raised over $3.41 billion overseas in December through External Commercial Borrowings (ECBs) and Foreign Currency Convertible Bonds (FCCBs), the Reserve Bank of India (RBI) said.
Around 65 companies raised over $2.35 billion through automatic route for various projects, while around $1.06 billion was raised by six companies under the approval route, according to RBI data.
Petroleum giant Indian Oil Corporation raised $500 million in ECBs for new projects. Besides, state-owned power major NTPC garnered $300 million in ECBs under the automatic route as part of its line of credit.
Corporates, registered under the Companies Act, 1956, can access ECBs up to $500 million in a financial year, under the automatic route. The ECB, which is not covered by the automatic route, is considered under the approval route on a case-by-case basis by the RBI.
ECBs are used as an additional source of funding by Indian corporates to augment resources available domestically.
FCCBs are also governed by norms similar to ECBs.
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Other major fund raisings in December under the automatic route were done by Videocon Industries ($200 million, for overseas acquisition) and Sistema Shyam Teleservices ($255 million for import of capital goods).
Under the approval route, Infotel Broadband Services raised $1 billion for refinancing rupee loans.