India Inc’s ECB, FCCB fundraising intent falls to $7.05 bn in September | Economy & Policy News

Indian companies, including non-banking financial companies (NBFCs), filed proposals with the Reserve Bank of India (RBI) to raise $7.05 billion through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) in September, lower than $8.13 billion in August, according to RBI data.

Of the total, $6.71 billion worth of proposals were under the general permission route, while $336.94 million was under the special permission route, the data showed.

Among the prominent companies that filed their intent in September was Vodafone Idea, which plans to raise $150 million from a financial institution in the International Financial Services Centre (IFSC) for 10 years for local sourcing of capital goods. Hindustan Petroleum Corporation plans to raise $500 million from a resident financial institution’s branch outside India for five years for general corporate purposes.

The National Bank for Financing Infrastructure and Development plans to raise $1 billion from the international capital market for 10 years for on-lending or sub-lending activities. Housing and Urban Development Corporation (HUDCO) plans to raise $500 million from a resident financial institution’s branch outside India for five years to refinance rupee loans.

Moreover, REC plans to raise $300 million from a financial institution in the IFSC for five years for general corporate purposes. NHPC plans to raise nearly $254.51 million from a financial institution in the IFSC for five years and four months for working capital requirements.

Under the special permission route, InterGlobe Aviation, which operates low-cost airline IndiGo, filed three proposals to raise $108 million, $65 million and nearly $163.94 million from leasing companies for 12 years and two months, seven years, and 12 years and one month, respectively. All three proposals are for importing capital goods.