India Inc raised $1.34 billion from foreign markets in October: RBI

Among the major borrowers, ONGC Videsh (OVL) raised $600 million for refinancing of an earlier ECB.

Indian Oil Corporation (IOCL) and Renew Solar Urja raised $250 million and $147 million, respectively, to use for rupee expenditure.

Fortum Solar Plus -- a company engaged in electricity, gas and steam air conditioning supply -- was the only firm to raise $14,749,994 through the issue of rupee-denominated bonds (RDBs) or masala bonds. Fortum Solar Plus will use the proceeds to refinance its rupee loans.

In the wake of the COVID-19 pandemic, ECBs had plunged to $700 million in May 2021, the lowest in two and half years. Gloomy demand outlook had forced domestic firms to stave off their fundraising and expansion plans and focus on cost-cutting measures.

After a pickup in economic activities, overseas borrowings by Indian companies gained momentum in the second quarter of the financial year.

India Inc raised $10.20 billion in the second quarter of the current fiscal through ECBs against $4.59 billion raised in the first quarter. Consequent demand for funds and low interest rates in the global markets helped the companies raise funds abroad.

In June 2021, overseas fundraising across industries stood at $1.5 billion, while it was $3.43 billion in July. India Inc raised $2.85 billion in August through ECBs and the funds touched nearly $4 billion in September.

Electricity and gas supply players were among the top borrowers from foreign market in the first six months of the current fiscal, raising $3.87 billion. The financial services sector raised $2.67 billion, while basic metal manufacturers raised $1.28 billion in the first half of this financial year.