India Inc.’s Overseas Borrowing Rose 6.5% To $2.12 Billion In November 2019
A collection of U.S. one-hundred dollar bills sit on a black background in this arranged photograph in Hong Kong, China. (Photographer: Paul Yeung/Bloomberg)  

India Inc.’s Overseas Borrowing Rose 6.5% To $2.12 Billion In November 2019

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Overall borrowings by India Inc. from overseas markets grew 6.5 percent to $2.12 billion in November 2019, data from the Reserve Bank of India shows.

Overseas borrowing of Indian companies stood at $1.99 billion in November 2018.

Of the total foreign borrowing during November 2019, $2,11,53,22,022 was raised through the automatic route under external commercial borrowing. No capital came in through the approval route, while the rest of $9,86,681 was by way of issuance of rupee-denominated bonds.

The major companies who chose the automatic route under ECB were:

  • Adani Transmission Ltd.: $500 million for refinancing of rupee loans
  • Tata Motors Ltd.: $400 million for rupee expenditure
  • Oil and Natural Gas Corp. Ltd.: $300 million for new projects
  • JSW Steel Ltd.: $250 million for refinancing of earlier ECB

Among others,

  • Home Credit India Finance raised $61.58 million for on-lending purpose.
  • Nipro India Corp. Pvt. Ltd borrowed $52.1 million for modernisation work.
  • Owens-Corning (India) Pvt. Ltd. raised $30 million for working capital needs.
  • Exxonmobil Services & Technology borrowed $30 million for rupee expenditure.

Margdarshak Financial Services Ltd., which is in the microfinance business except for insurance and pension funding, was the sole entity to raise the money by issuing the rupee bonds—popularly known as masala bonds.

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