India Inc’s foreign borrowings drop 47% to $1.75 bn in August: RBI data

India Inc’s foreign borrowings drop 47% to $1.75 bn in August: RBI data

India Inc’s foreign borrowings fell by over 47% in August this year to $1.75 billion, data from the Reserve Bank showed on Monday.

The domestic companies had borrowed a total of $3.32 billion from overseas markets in August 2019, by way of external commercial borrowings (ECBs).

Of the total borrowings from overseas sources during the month under review, $1.61 billion was raised through ECBs, while the rest $145.74 million was raised by issuing rupee denominated bonds (RDBs) or masala bonds, showed the RBI’s ‘Data on ECB/FCCB for the month of August 2020’.

Splitting the data in the ECB category, it said a total of $1.57 billion was raised by various companies through the automatic route, while the rest $35.93 million came in through the approval route.

A total of eight firms issued masala bonds or RDBs, which included Ostro Mahawind Power Private Limited raising $78.6 million and Ostro Renewables Pvt Ltd $20.01 million.

Heramba Renewables Limited and Shreyas Solarfarms Limited raised $13.33 million and 13.32 million respectively, as per the data. No money was raised through masala bonds in August 2019.

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