Corporate India raised $1.44 billion overseas in February
01 Apr 2011
Indian entities have raised over $1.44 billion overseas by way of external commercial borrowings and foreign currency convertible bonds, figures released by the Reserve Bank of India showed.
Around 45 companies raised over $1.41 billion through the automatic route, which does not require approval of the RBI or the government, while four firms raised around $26.96 million under the approval route, RBI data showed.
State-run Power Finance Corporation Ltd raised $260 million in external commercial borrowings (ECB) through the automatic route.
Bharat Petroleum Corporation Ltd raised $200 million, while Bharat Oman Refineries Ltd raised $125 million and HPCL Mittal Energy raised $100 million by way of external commercial borrowings.
Companies registered under the Companies Act, 1956, are allowed to raise up to a maximum $500 million in external commercial borrowings in a financial year, through the automatic route.
ECBs are used as an additional source of funding by Indian corporates to augment the resources available domestically. Foreign currency convertible bonds (FCCBs) are also governed by norms similar to ECBs.
.webp)
