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India Inc has raised over $1.44 billion overseas in February through External Commercial Borrowings and Foreign Currency Convertible Bonds, the Reserve Bank of India said.
Around 45 companies raised over $1.41 billion for various projects through the automatic route, which does not require RBI or the Government’s approval. As many as four firms raised around $27 million under the approval route, according to RBI data.
State-run Power Finance Corporation Ltd mopped up $260 million through ECBs during the month. Another state-sector company Bharat Petroluem Corporation Ltd raised $200 million via ECBs for its rupee expenditure.
Corporates, registered under the Companies Act, 1956, can access ECBs up to $500 million in a financial year, under the automatic route. Under the approval route, the projects are cleared on a case-by-case basis by RBI.
ECBs are used as an additional source of funding by Indian corporates to augment the resources available domestically. Foreign Currency Convertible Bonds (FCCBs) are also governed by norms similar to ECBs.
Other major fund raisings in February using the automatic route were undertaken by Bharat Oman Refineries which raised $125 million for funding its new project and HPCL Mittal Energy Ltd which mopped up $100 million.
Under the approval route, Hindustan Construction Company Ltd raised $17.23 million for import of capital goods during the period.
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