The Hindu Business Line : Reliance Comm, Tata Steel borrow $1.37 b overseas in Sept

Reliance Communications and Tata Steel are among the major corporates that raised money through external commercial borrowings in September, according to the data released by the Reserve Bank of India on Wednesday.

The two companies each raised $500 million through ECBs, through the automatic route. While Reliance Communications raised the funds for refinancing of old loans, Tata Steel raised it for overseas acquisition. Tata Steel had also raised $375 million through the approval route in September.

The total amount raised by Indian corporates in September was around $1.6 billion, which is marginally higher than the $1.5 billion raised in August. Including the funds raised through the approval route, the total amount is about $2.2 billion. Reliance Petroleum had also raised $275 million through approval route.

The amount is lower as compared to June and July, due to the restriction imposed by RBI on ECBs. In August the RBI restricted the ECB amount to a maximum of $20 million per company and only for foreign currency expenditure. Some companies would have received the permission before the RBI restriction.

The other major corporates that raised money in September were Essar Steel, which raised $190 million for refinancing of old loans, The Great Eastern Shipping Company raised $60 million for import of capital goods, Bhusan Steel and Strips raised $55 million for import of capital goods and Kirloskar Oil Engines raised $35 million for import of capital goods.