Better business environment ups India ECB borrowings at $4.3 bn in February

MUMBAI: Showing signs of uptick and confidence in Indian business environment, external commercial borrowing ( ECB) by Indian companies rose to $4.3 billion in February 2014.

The borrowing by Indian firms via this route were at $1.79 billion in the previous month.

According to data provided by the Reserve Bank today, the borrowings by domestic companies through ECB or Foreign Currency Convertible Bonds (FCCB) for the month of February were a combination of automatic and approval route.

"It is clearly a reflection that global investment confidence is getting accepted into the Indian businesses," said Jagannadham Thunuguntla, Chief Strategist and Head of Research of SMC Global Securities Limited.

As per the data, as much as $3.64 billion was raised through approval route during the month, while $661.76 million was raised by the way of automatic route.

Through the approval route, ONGC Videsh Limited in two separate tranches raised $1.76 billion and $725 million for overseas acquisitions.

Among others who mobilised funds during February through this route, Indian Railway Finance Corporation Limited borrowed $500 million through this route for railways work, while mortgage lender HDFC Ltd raised $300 million for on-lending to low-cost housing projects.

HPCL-Mittal Energy Limited borrowed a total $274.69 million in three separate tranches for refinancing of earlier ECB.

In the automatic route category, state-owned Bharat Petroleum Corporation Limited raised $300 million for working capital requirement and Lulu Convention and Exhibition Centre Private Limited raised $98 million for its new project.

Among others, Panama Wind Energy Godawari Private Limited raised $72 million for power requirements, Birla Corp $70 million for refinancing of earlier ECB and Renault India $27 million for its new project.

JSW Steel Limited raised a total of $21.25 million in two separate tranches for import of capital goods, Claris Lifesciences raised $15 million for modernisation and Honda Cars India $10 million for rupee expenditure.

India's ECB till Feb in fiscal 2013-14 stood at $29.67 billion.