India Inc raised $2.72 billion more through external commercial borrowings (ECB) in the first 11 months of financial year 2013-14, according to RBI data.

In the April 2013 to February 2014 period, Indian companies raised $29.68 billion against $26.96 billion in the year-ago period.

According to Ashutosh Khajuria, President (Treasury), Federal Bank, expectations that interest rates may firm up in the US as the tapering (reduction) in the bond purchase programme runs its course, could be the trigger for corporates to go for overseas fund-raising.

According to the latest RBI data on ECBs, Indian companies collectively mopped up $4.30 billion in February. This is almost 140 per cent more than the amount raised in the previous month.

Big fund raisers Among the big fund raisers in February are: ONGC Videsh Ltd (raised ECB for an overseas acquisition in two tranches — $1.77 billion for five-years and $725 million for a year); Indian Railway Finance Corporation ($500 million for five years); HDFC ($300 million through a five-year ECB for on-lending to low-cost housing projects); and Bharat Petroleum Corporation Ltd ($300 million for three years for working capital purpose).

ECBs refer to commercial loans in the form of bank loans, securitised instruments (floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares), buyers’ credit, suppliers’ credit availed of from non-resident lenders with a minimum average maturity of three years

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