Corporate India raised close to $1.5 billion through external commercial borrowings (ECB) and foreign currency convertible bonds (FCCB) in December 2005.

The funds raised by 57 companies through the automatic route, which does not need prior approval of the Reserve Bank of India (RBI), touched $1.46 billion.

Four entities, including the Export-Import bank of India and Astra Zeneca India, raised $94.87 million after obtaining the RBI nod.

Indian Oil Corporation Ltd (IOC) was the largest issuer of external commercial borrowings. It raised $300 million for importing capital goods and modernisation.

The maturity of IOC’s ECB is 5 years and four months. Industrial Development Bank of India mopped up $75 million through ECBs for one year-and six-months to retire old debt, according to the RBI data released.

Bhushan Steel and Strips and Jindal Steel and Power Company will use $155 million and $75 million, respectively, raised through external commercial borrowings, to import capital goods and modernisation.

The Aditya Birla group company, Aditya Nuvo, 14.98 million to import capital goods.

Five companies garnered funds through FCCBs – a quasi-equity instrument – for modernisation programmes and purchase of capital goods.

Spice Jet and Vishal Exports raised $ 80 million each with a tenure of five-years and five years and one month, respectively to fund imports of goods and project work.

( www.banking-standards.com)