Showing signs of uptick and confidence in Indian business environment, external commercial borrowing (ECB) by Indian companies rose to $4.3 billion in February 2014. The borrowing by Indian companies through this route were at $1.79 billion in the previous month. According to data provided by the Reserve Bank on Wednesday, the borrowings by domestic companies through ECB or foreign currency convertible bonds (FCCB) in February were a combination of automatic and approval route.
"It is clearly a reflection that global investment confidence is getting accepted into the Indian businesses," said Jagannadham Thunuguntla, Chief Strategist and Head of Research of SMC Global Securities Ltd.
According to the data, as much as $3.64 billion was raised through approval route during the month, while $661.76 million was raised by via the automatic route.
Through the approval route, ONGC Videsh Ltd in two separate tranches raised $1.76 billion and $725 million for foreign acquisitions.
Among others who mobilised funds during February through this route, Indian Railway Finance Corporation Ltd borrowed $500 million through this route for railways work, while mortgage lender HDFC Ltd raised $300 million for on-lending to low-cost housing projects.
