The Reserve Bank of India (RBI) in its latest report on 'Data on ECB/FCCB for the month of August 2020' has showed that foreign borrowings of India Inc fell by over 47 per cent in August 2020 to $1.75 billion as compared to $3.32 billion borrowed from overseas markets in August 2019, by way of external commercial borrowings (ECBs). The report showed that 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. 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.
The major borrowers in the automatic route of ECB included Reliance Sibur Elastomers, a manufacturer of chemicals and chemical products, which raised $339.42 million for refinancing of an earlier ECB. Vijayapura Tollway raised $160 million for infrastructure development and China Steel Corporation India Private Limited $104.5 million for refinancing of an earlier ECB.
A total of eight firms issued masala bonds or RDBs, which included Ostro Mahawind Power Private Limited raising $78.6 million and Ostro Renewables Private Limited $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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