The Reserve Bank India (RBI) in its latest report has showed that Indian companies’ foreign borrowings dropped nearly 66% to $1.41 billion in October 2018. The domestic firms had borrowed $4.09 billion from overseas markets through external commercial borrowings (ECBs) as well as Foreign Currency Convertible Bonds (FCCBs) in October 2017. Besides, there was additional borrowings of $314.99 million through rupee denominated bonds (RDBs) in the year-ago month.
However, the borrowings through RDBs remained unchanged in October 2018. Of the total borrowing amount in October 2018, the Indian companies brought in $1.40 billion through automatic route and the rest of $8.54 million was by way of approval route.
Among the major borrowers, HPCL-Mittal Energy raised $350 million for rupee expenditure; Oppo Mobiles India $250 million for import of capital goods; Ostro Kutch Wind $88.27 million for new project; ICICI Home Finance Company $75 million for on-lending. Bharti Airtel raised $100 million each for tenors of 5 years and 6 years for refinancing of earlier ECB and rupee expenditure respectively. Taiyo Nippon Sanso India ($ 8.54 million) was the only company to have raised money from approval route.
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