India Inc raises $2.8 bn in foreign borrowings in December

MUMBAI: Indian firms in December 2016 raised $2.8 billion in overseas borrowings, including that from rupee denominated bonds (RDB), according to RBI data.

In the same month a year ago (December 2015), the foreign borrowings by Indian firms were at $3.03 billion.

However, the data can not be compared year-on-year basis, as the Indian companies were allowed to raise money through newly introduced RDB instruments in 2016.

The Reserve Bank started publishing data on these rupee denominated bonds from September last year.

Of the total fund raised during the month, money through external commercial borrowings (ECB), both from automatic and approval route, were at $2.49 billion.

The rest of $315.50 million were generated by floating rupee denominated bonds in December by a total of seven companies.

Those raising money via RDB included: Sembcorp Gayatri Power $116.26 million for power project, while Ikea India Pvt Ltd and Zuari Cement Ltd raised $73.64 million each for general corporate purpose and refinancing of earlier rupee loans, respectively.

Using ECB channel, the companies who borrowed funds from overseas by approval route included Reliance Industries $1.75 billion for refinancing of earlier ECB and TSMT Technology India Ltd $14 million for starting new project.

From automatic route: Intas Pharmaceuticals borrowed $274.16 million for overseas acquisition, IL&FS Transportation Networks $50 million for on lending, Novozymes South Asia Ltd $47.13 million for rupee expenditure and Lulu Convention and Exhibition Centre $48.03 million for new project.