India Inc raised about three times more via external commercial borrowings (ECBs) in May at $1.516 billion compared with the previous month’s $361.60 million, as economic activity gained traction.

The biggest fund raisers under the automatic route in May included Adani Airport Holdings ($250 million), HPCL- Mittal Energy Ltd ($200 million), Wingtech Mobile Communication (India) Pvt Ltd ($150 million), Reliance Infrastructure ($100 million), Tata Capital Housing Finance ($75 million), Adlux Medicity And Convention Centre Pvt Ltd ($45.26 million), India Shelter Finance Corporation and Hyosung India ($30 million each).

REC raised $100 million under the approval route. ECBs are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc.

Resources raised by India Inc via ECBs had dwindled sharply to $361.6 million in April. In the previous month, they had mopped up $5.029 billion.

As part of temporary measures to enhance forex inflows in the backdrop of dollar tightness and a depreciating rupee, the RBI recently doubled the ECB limit under the automatic route to $1.50 billion per financial year .

Further, the all-in cost ceiling under the ECB framework has been raised by 100 basis points, subject to the borrower being of investment grade rating. These dispensations are available up to December 31, 2022.

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