Corporates’ foreign borrowing trebles to USD 3.81 billion in December

Of the total fundraising during last month, $3.77 billion was mobilised through external commercial borrowings (ECBs) in the foreign markets, while $37.04 million was through rupee-denominated bonds (RDBs), showed the RBI data on ECB for December 2018. The domestic firms had raised $1.31 billion through the ECB route in December 2017. In the ECB category, $3.30 billion was raised through the automatic route and the rest of $473.56 million was mopped up through the approval route.

Among the major borrowers, Indian Oil Corporation raised $1.3 billion as a working capital loan; Bharat Oman Refineries Ltd $125 million for refinancing of earlier ECB; and Power Grid Corporation of India Ltd $195.83 million for power projects. NTPC and Hindustan Petroleum Corp raised $300 million each for power projects and working capital needs respectively; PNB Housing Finance borrowed $265 million for on-lending and Bharat Petroleum Corporation $450 million for its working capital requirements.

Mortgage lender HDFC was the only borrower to raise the $473.56 million loan under the approval route of ECB. Those who issued RDBs, or the masala bonds, in foreign markets included Avas Financiers that raised $28.28 million for on-lending and Roserve Enviro Pvt Ltd which mopped up $7.78 million for rupee expenditure.

BLURB: Of the total fundraising during last month, $3.77 billion was mobilised through external commercial borrowings (ECBs) in the foreign markets, while $37.04 million was through rupee-denominated bonds (RDBs), showed the RBI data on ECB for December 2018.