India Inc raises $2.82 bn through ECB, FCCBs in April

After crossing the $4-billion (Rs 18,540 crore) mark in March, the money raised by Indian companies through external commercial borrowing (ECB) and foreign currency convertible bonds (FCCBs) dipped to $ 2.82 billion (Rs 13,056.6 crore) in April. During the calendar year up to April Indian companies raised a total of $ 10.65 billion (around Rs 48,990 crore) through ECB and FCCBs as compared to $ 3.2 billion in the corresponding period last year, according to the data released by the Reserve Bank of India. In April last year, Indian companies availed of foreign loans worth $298 million (Rs1,379.74 crore). Vodafone Essar, the global telecom operator, was the biggest borrower in April, raising $ 1.47 billion (Rs 6,806.1 crore) from eight transactions for import of local capital goods. National Aviation Company of India, the second highest borrower raised $ 376 million (Rs 1,740.8 crore) while Shipping Corporation of India raised $ 260 million (Rs 1,203.8). Other big borrowers included Export-Import Bank of India which raised $200 million. Industry experts believe that since India is perceived to be a good market, ECB volumes will continue to rise despite the global economic uncertainty. "The recent economic crisis will have not any impact on the ECB volumes," said a senior bank executive. Two companies raised funds through FCCBs — Prakash Industries availed $60 million (Rs 277.8 crore) while Core projects and Technologies raised $ 75 million (Rs 347.25 crore).