India Inc's July overseas borrowing jumps by 57%
23 Aug 2017 10:58 PM IST
Mumbai: Indian companies raised $1.89 billion from overseas markets last month, 57.5 per cent more than a year ago, the Reserve Bank data showed on Wednesday.
They had, in comparison, borrowed $1.20 billion from overseas markets in July last year. The sources of funds raised in July this year included external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs).
There was no data on credit offtake through rupee denominated bonds (RDBs) during the month as they were banned temporarily by capital markets regulator Sebi.
"As rupee-denominated bonds issued by Indian corporates overseas are covered under Combined Corporate Debt Limit (CCDL), issuance of such bonds overseas shall temporarily cease, until the limit utilisation falls back to below 92 per cent," Sebi had said.
The ban came in less than an year since the RBI started giving data on RDB borrowings from September 2016. The RBI data showed that $1.24 billion was raised via the automatic route last month, while the rest of $650 million came through approval route. Rural Electrification Corporation took the approval route of ECB to raise $450 million and $200 million in separate tranches of 10 years and 5 years respectively.
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