NEW DELHI: According to RBI data released on Thursday, Indian corporations raised over USD 3.43 billion from international markets through external commercial borrowings (ECBS) in July, increasing nearly 60% from a year ago. In July 2020, Indian enterprises borrowed USD 2.15 billion from international markets.
The ECB’s automated route accounted for $3.03 billion of the total borrowings in July 2021, while the approved route accounted for $400 million.
ECB investments in India’s real sector – industrial sector, particularly infrastructure – are subject to the Automatic Route, which means they do not require RBI or government permission. Applicants may use the Approval Route if they are unsure if they can use the Automatic Route.
According to RBI data, REC Ltd, which provides financial services to the power sector, was the only big borrower to raise the entire $400 million via the ECB’s clearance procedure for on-lending.
Adani Ports and Special Economic Zone (SEZ) received USD 750 million for working capital requirements. The Indian Oil Corporation received USD 500 million for refinancing of earlier ECB. The Adani Electricity Mumbai Ltd received USD 300 million for refinancing of earlier ECB, and Housing Development Finance Corporation (HDFC Ltd) received USD 250 million for on/sub-lending.
Matix Fertilizers and Chemicals has secured USD 320 million for rupee loan refinancing and USD 237.5 million for operating capital. Cadila Healthcare borrowed USD 66.67 million to refinance its previous ECB, and Roquette India Private Ltd borrowed USD 43.75 million to meet its working capital needs.