New Delhi: India Inc’s witnessed a steady decline in their overseas borrowings as their financial raising from international markets fell by 30.3 per cent from a year ago to USD 1.47 billion in October 2016, RBI data showed.
They had borrowed a total of USD 2.11 billion from overseas sources in October 2015.
Besides, an additional USD 299.64 million was raised by three companies through newly allowed rupee denominated bonds (RDB) floated overseas popularly known as masala bonds.
So the data could not be compared adding the RDB funds alongwith the normal External Commercial Borrowing (ECB) route, which the companies generally use, as this is the second month only that RBI had published the data on RDB.
Under the approval route of the ECB category, only one company Tulshyan Shipping & Offshore Services Pvt Ltd raised USD 12.2 million for import of capital goods.
While under the automatic route (ECB), major borrowers included Reliance Industries USD 184.28 million for refinancing of earlier ECB, Delhi International Airport USD 522.6 million for refinancing of rupee loans/earlier ECB; and Thermal Powertech Corporation India USD 246 million for other purposes.
Dr Reddy’s Laboratories raised USD 150 million for refinancing earlier ECB; IL&FS Transportation Networks USD 50.0 million for general corporate purpose while Greenply Industries USD 47. 20 million and Essar Shipping USD 44.92 million for import of capital goods each.
Those who raised money through RDB facility were HDFC Ltd and Fullerton India Credit USD 74.91 million each for on lending. ECL Finance USD 149.82 million for general corporate purpose from masala bonds.
Recently allowed masala bonds are rupee-denominated financial instruments through which Indian entities can raise funds by accessing overseas capital markets, where the bond investors hold the currency risk.