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Indian companies' foreign borrowing jumps 60% in July to $3.43 billion

Indian companies' foreign borrowing jumps 60% in July to $3.43 billion

Of the total borrowings during July 2021, $3.03 billion came in through the automatic route of the ECB, while $400 million was through the approval route

Indian companies had borrowed USD 2.15 billion from overseas markets in July 2020. Indian companies had borrowed USD 2.15 billion from overseas markets in July 2020.

Indian companies raised over USD 3.43 billion from foreign markets through external commercial borrowings (ECBs) in July this year, up by nearly 60 per cent from a year ago, RBI data showed on Thursday. Indian companies had borrowed USD 2.15 billion from overseas markets in July 2020.

Of the total borrowings during July 2021, USD 3.03 billion came in through the automatic route of the ECB, while USD 400 million was through the approval route.

Among the major borrowers, REC Ltd -- which is engaged in financial services in the power sector -- was the only company to raise the entire 400 million via approval route of the ECB for the purpose of on-lending, showed the RBI data.

Those in the automatic category, included Adani Ports and Special Economic Zone USD 750 million for working capital needs; Indian Oil Corporation USD 500 million for refinancing of earlier ECB; Adani Electricity Mumbai Ltd USD 300 million for refinancing of earlier ECB and Housing Development Finance Corporation (HDFC Ltd) USD 250 million for on/sub-lending.

Matix Fertilisers and Chemicals raised USD 320 million for refinancing of rupee loans and USD 237.5 million for working capital. Cadila Healthcare borrowed USD 66.67 million for refinancing of earlier ECB and Roquette India Pvt Ltd USD 43.75 million for working capital needs.

Published on: Sep 02, 2021, 10:15 PM IST
Posted by: Manoj Sharma, Sep 02, 2021, 10:12 PM IST