India Inc mops up $8 bn to fund growth
India Inc's acquisition spree has propelled the country ahead of China in terms of raising syndicated loans.
By PTI |
NEW DELHI: Corporate India's acquisition spree has propelled the country ahead of China in terms of raising syndicated loans as companies have mopped up more than $8 billion so far this year to fund expansion projects.
According to data complied by global consulting firm Dealogic, loans gathered by BRIC nations (Brazil, Russia, India and China) rose 104 per cent to $78.9 billion so far this year from $38.7 billion in the corresponding period of 2006.
Indian companies account for 10.5 per cent of the total syndicated loans by BRIC nations, with borrowings of about $8.28 billion in 2007 so far. This is higher than China's 7.9 per cent or over $6 billion, Dealogic said.
"Russia is the most active BRIC nation with a 67.9 per cent market share, followed by Brazil at 13.6 per cent, India at 10.5 per cent and China at 7.9 per cent," the report said.
Dealogic said proceeds of the loans have been mainly used for acquisition purposes. "Around 47 per cent of the proceeds of the BRIC nations syndicated loans was utilised for acquisition purposes," it said.
A whopping $36.7 billion was utilised for seven acquisition deals in 2007, quite a jump from $2.3 billion for six deals in 2006.
Oil and gas was the top industry group, raising $39 billion through 11 deals in 2007. This represented an increase of 186 per cent compared to corresponding period in 2006 at $13.6 billion for 14 deals.
According to data complied by global consulting firm Dealogic, loans gathered by BRIC nations (Brazil, Russia, India and China) rose 104 per cent to $78.9 billion so far this year from $38.7 billion in the corresponding period of 2006.
Indian companies account for 10.5 per cent of the total syndicated loans by BRIC nations, with borrowings of about $8.28 billion in 2007 so far. This is higher than China's 7.9 per cent or over $6 billion, Dealogic said.
"Russia is the most active BRIC nation with a 67.9 per cent market share, followed by Brazil at 13.6 per cent, India at 10.5 per cent and China at 7.9 per cent," the report said.
Dealogic said proceeds of the loans have been mainly used for acquisition purposes. "Around 47 per cent of the proceeds of the BRIC nations syndicated loans was utilised for acquisition purposes," it said.
A whopping $36.7 billion was utilised for seven acquisition deals in 2007, quite a jump from $2.3 billion for six deals in 2006.
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Oil and gas was the top industry group, raising $39 billion through 11 deals in 2007. This represented an increase of 186 per cent compared to corresponding period in 2006 at $13.6 billion for 14 deals.
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