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Our Bureau

Mumbai, Nov. 24 Indian companies raised a total of $2.58 billion through overseas borrowing in October, according to the latest figures released by the Reserve Bank of India.

This is higher than September when companies had raised a total of $1.5 billion through ECBs and FCCBs.

In October, companies raised $2.34 billion through the automatic route and $2.48 billion through the approval route.

Some of the companies that raised funds under Foreign Commercial Convertible Bonds were Tata Motors, which raised $375 million for overseas acquisition, Larsen and Toubro, which raised $200 million for conversion of its rupee debt, Sesa Goa, which raised $500 million for modernisation, and Sterlite Industries which raised $500 million for modernisation.

Export-Import Bank of India raised $222 million through ECBs for onward or sub-lending.

According to a banking analyst, with liquidity pressures in the overseas market easing, Indian companies are finding it cheaper to raise foreign currency funds, given the interest rate differential between domestic and overseas borrowing.

More Stories on : Corporate Bonds | Overseas Borrowings

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