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Our Bureau

"The borrowings during the month were high since interest rates were attractively low and there were signs of interest rates rising in the US. "

Mumbai , June 1

INDIAN companies have raised external commercial borrowings worth $1,756 million in April 2004. This includes borrowings through both the automatic and the approval routes.

The Reserve Bank of India data, released on Tuesday, revealed that a total of 73 proposals for ECBs went through the automatic route. The amount raised through these proposals totalled $1,356 million.

Under the approval route, two proposals, namely, Exim Bank of $300 million and Power Finance Corporation of $100 million, were approved for a maturity period of five years each.

The total amount under the approval route was $400 million.

"The level of borrowings was high in April," said Mr A. Prasanna, Vice-President, Fixed Income Analyst, I-Sec. "The borrowings during the month were high since interest rates were attractively low and there were signs of rising interest rates in the US. There was also the currency view, which made companies tap this route even on an unhedged basis," he added.

In April, the view was firm that the rupee would continue on its appreciating spree against the dollar.

Some of the prominent borrowers in April were Reliance Industries ($250 million), Tata Motors ($300 million for seven years and $100 million for five years), Ashok Leyland ($100 million,) Zee Telefilms ($100 million), Bharti Telefilms ($115 million) and Mahindra & Mahindra ($115 million for five years and $15 million for six years), among others.

The end usage has been a mix of working capital, modernisation and import of capital goods.

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