India Inc. generates 1.82 billion dollars from overseas markets

Rupee denominated bonds, also known as the masala bonds, and the external commercial borrowings have stimulated the overseas markets for Indian companies to generate a humongous capital of 1.82 billion dollars from the markets in January.

While in the previous year, the domestic companies had ployed to raise 1.40 billion dollars in foreign debts, the fund raise remains uncomparable, as the mode to raise funds in the current year only included rupee-denominated bonds (RDBs). RDBs related data has been raised by the Reserve Bank of India (RBI) since September 2016, post granting allowance to the corporates for raising foreign funds through this scheme.

In the RBI released report, the generation of 1.80 billion dollars is credited to the external commercial borrowings (ECB); and the other 11.75 million is credited to the rupee-denominated bonds, of the total generated borrowings.

In the total ECB generated by the Indian companies, 1.38 billion dollar was raised through the automatic route; and the remaining 426.96 million dollar was raised through the approval channel.

While, Rural Electrification Corporation, the highest borrower in the approval category, raised 400 million dollar for on-lending.