Firms raised $722 m ECBs in May

Indian Inc raised a total of $721.66 million through the external commercial borrowing (ECB) route in May.

The funds were raised both through debt (loans and bonds) and quasi-debt instruments such as foreign currency convertible bonds (FCCBs).

The month witnessed all the proposals getting cleared under the automatic route (no prior RBI nod required). Out of 44 corporates raising overseas funds, only three chose to float FCCBs.

Amtek Auto led the pack by raising $150 million FCCB of 5 years and 2 months maturity to be used for modernisation.

The rest of the relatively big-ticket borrowers were""Housing Development Finance Corporation ($112 million ECB for refinancing), Jubilant Organosys ($100 million FCCB for rupee expenditure) and $124 million by Gateway Terminals for 11 years three months for project finance.

The maturity of the funds raised ranged from one year six months to 17 years 8 months.