$9.4 billion ECB redemption to have muted impact on Rupee: Religare

MUMBAI: India's external commercial borrowing (ECB), the largest component of its external debt, is slowing, in line with the macro, down 33% in 2012, says a report by financial services group Religare. Lukewarm markets have pushed FCCBs to the background, and companies face $9.4bn redemption by March'13.

However, Religare sees the rupee -impact to be muted with increased refinancing-17/20 quarters have had net positive inflows since 2007. A sovereign downgrade by December could change this.

The Apr-June'12 quarter saw inflows of $8.1 bn, about the same as last year. Religare estimates overall borrowing for FY13 to be 10% lower than last year's $36bn. ECBs are the largest component of India's external debt at 30% ($105bn in Mar'12).