India Inc raises record dlr 7.3 bn loans in 2007 so far
NEW DELHI: India Inc's fund raising spree for expansion and growth plans has pushed up the figure of loans gathered by companies to a record $7.3 billion (about Rs 29,600 crore) so far this year, a latest report says.
According to data complied by global consulting firm Dealogic, the total volume of syndicated loan of corporate India has shot up by 19 per cent to a record $7.3 billion in 2007 till now as against $6.1 billion (about Rs 24,747.7 crore) during the same period in 2006.
Among the top five deals for Indian syndicate loans in 2007 so far, corporate behemoth Reliance Industries has grabbed the first and second spot.
The Mukesh Ambani-controlled firm leads with loans worth $2 billion (about Rs 8100 crore) and $925 million (over Rs 3700 crore) raised for the purpose of working capital and project financing, respectively.
Syndicated loan refers to a large sum of funds provided by a group of banks collectively to a borrower. There is usually one lead bank that takes a percentage of the loan and syndicates the rest to other banks.
In January, RIL raised two billion dollar through a 10-year overseas syndicated loan for building working capital to fund its oil and gas exploration activity in the D6 block of the Krishna-Godawari basin.
The loan was arranged by a consortium of 14 banks, including Citigroup, ABN-Amro, Standard Chartered, HSBC, ICICI Bank and DBS.
Reliance is closely followed by Air India, Emaar MGF Land Pvt and UK-based Vodafone, which has recently acquired majority stake in Hutchinson India, the Dealogic report shows.
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