In August, India Inc borrowed $2.36 b via ECB window

Our Bureau Updated - March 12, 2018 at 01:45 PM.

Indian companies raised $2.36 billion through external commercial borrowings in August 2012. About half of this was through the automatic route and half through the case-by-case approval route. This distinction may not be there in borrowings for subsequent months after the Finance Ministry had in September decided to grant approvals to all borrowings that satisfied certain conditions.

The automatic route is expected to speed up the process of overseas borrowings. The approval process is said to take about three weeks time currently.

Tax cut

The Finance Ministry had also cut the tax paid on interest income earned by overseas lenders to 5 per cent from 20 per cent earlier. This is expected to help increase the quantum of money raised from abroad over the next few months. Since the beginning of the fiscal Indian companies have raised $11.52 billion — April $2.73 billion; May $3.37 billion; June $1.97 billion; July $1.07 billion; and August $2.36 billion.

Among the top borrowers in August were Power Grid Corporation ($270 million) and Power Finance Corporation ( $200 million). The tenor was also the longest in the list of 75 companies at 14 years and nine months. The all-inclusive costs for borrowings beyond five years are capped at six-month LIBOR plus 500 basis points.

> vageesh.nagarajan@thehindu.co.in

Published on October 12, 2012 15:36