Financial Daily from THE HINDU group of publications
Monday, Mar 20, 2006
Financial Daily from THE HINDU group of publications Monday, Mar 20, 2006 |
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Corporate - Overseas Borrowings ECBs by Indian cos may cross $15 b this fiscal N.S.Vageesh
Filling the coffers About 478 companies have raised money through ECBs till January. Bank lending has gone up 30 per cent; about Rs 3,19,000 crore during this fiscal so far.
Chennai , March 19 With some top corporates already lining up some big-ticket fund raisings, external commercial borrowings (ECBs) by Indian companies in this fiscal may well cross $15 billion or about Rs 67,500 crore. That would be $2.5 billion more than the previous year. Indian companies raised $1.79 billion through ECBs in January 2006. The cumulative external borrowing by these companies over the 10-month period this fiscal is $11.57 billion. Publicly stated fund raising by some companies in February (such as the raising of $1.5 billion by Reliance Petroleum, and the plans to raise $1 billion by NTPC, besides many others) point to the fact that ECBs may cross the $15-billion-mark this year. About 478 companies have raised money through external commercial borrowings till the end of January. Domestic fund raising has also been going on at a hectic pace. Bank lending has gone up 30 per cent as they lent incrementally about Rs 3,19,000 crore during this fiscal so far.
CMIE report
According to the Centre for Monitoring Indian Economy (CMIE)'s survey of investment plans conducted in January 2006, fresh investments announced by Indian companies during the quarter aggregated about Rs 2.9 lakh crore. The bullish sentiment in the economy is evident from the fact that in the preceding 8 years, the survey has revealed fresh investment plans for the whole year of about Rs 1.5 lakh crore to Rs 2 lakh crore. Interest rates have been going up both locally as well as overseas. Bankers and treasury heads have suggested that there is little to choose between the two (borrowing locally or abroad), if only rates were considered. However, they have made the point that foreign funds are available for the longer term - beyond five years. For instance, Reliance Petroleum's overseas borrowing has a 10-year tenor.
Related Stories: More Stories on : Economy | Overseas Borrowings
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