India Inc raised over $2.65 billion from overseas markets in May through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), the Reserve Bank said.
Around 60 companies raised almost $1.50 billion for various projects through the automatic route, which does not require RBI or the government approval.
Another $1.15 billion were raised through the approval route, according to the RBI data. Private firm Hospira Healthcare India raised $250 million through ECBs for import of capital goods in May.
ERA Infra Engineering mopped up $220 million through ECBs during the month for its overseas acquisition and Jaiprakash Power Ventures raised $188.56 million for import of capital goods.
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 RBI.
ECBs are used as an additional source of funding by Indian corporates to augment resources available domestically. Foreign Currency Convertible Bonds (FCCBs) are also governed by norms similar to ECBs.
Other major fund raisings in May using the automatic route came from Torrent Power which raised $60 million for import of capital goods while Ashok Leyland mopped up $50 million.
Under the approval route, Tata Teleservices raised a total of $750 million in two tranches for refinancing its rupee loans, while Bhushan Steel raised $259.91 million for import of capital goods during May.
