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India Inc raises $2.4 bn through ECBs

Last Updated: Thu, Oct 11, 2012 19:47 hrs
Maintenance engineers work on top of a power generating wind turbine at Suzlon wind farm in Surajbari village

In August, Indian companies raised $2.36 billion through external commercial borrowing (ECB) and foreign currency convertible bonds (FCCBs). These were aimed at funding modernisation plans, foreign acquisitions and importing capital goods.

Of the amount raised, $1.21 billion was through the automatic route, while $1.15 billion was raised through the approval route that requires case-by-case approval by the Reserve Bank of India.

Power Grid Corporation accounted for external borrowings of $270 million; the tenure of the loan is 14 years and nine months.

Under the approval route, Power Finance Corporation raised $ 250 million for three years.

In August, there was a single FCCB issuance—Tulip Telecom’s $100-million issue for five years.

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