External Commercial Borrowings

Micro finance firm Spandana Sphoorty Financial Limited on Thursday said it raised USD 20 million from External Commercial Borrowings (ECBs) to fund business growth. The company has raised External Commercial Borrowings of USD 20 million with a tenure of 36 months, Spandana Sphoorty Financial said in a regulatory filing. Last year, RBI had imposed a monetary penalty on Spandana Sphoorty for the company's failure to adhere to pricing of credit guidelines for Non-Banking Financial Company-Micro Finance Institutions. In furtherance to the same, a notice was issued to the company advising it to show cause as to why penalty should not be imposed on it for failure to comply with the RBI directions, the RBI had said.

Approvals may be $30-35 bn in FY23, says ICRA

Additionally, its public issue of non-convertible debentures (NCDs) worth up to 5 billion Indian rupees ($61.4 million) will launch on Nov. 14

The loans, which are likely to have a five-year term, are anticipated to be priced 130-150 basis points higher than the Secured Overnight Financing Rate (SOFR), a benchmark rate used around the world

India Inc's foreign commercial borrowings in August this year rose by nearly 4.6 per cent to USD 2.98 billion, according to the RBI data. In August 2021, the Indian businesses borrowed USD 2.85 billion in the form of external commercial borrowings. Of the total borrowings in August this year, over USD 2.47 billion was through the automatic route of raising funds from foreign sources. While more than USD 502.79 million was raised by way of issuing rupee denominated bonds (RDBs) or masala bonds. Among the major borrowers include mortgage lender HDFC Ltd USD 1.1 billion for the purpose of sub-lending; FS India Solar Ventures USD 500 million for a new project; Fullerton India Credit Co Ltd USD 350 million for sub-lending and Toyota Financial Services USD 50 million for refinancing of Rupee loans. Among others, IIFL Finance raised USD 50 million for refinancing of earlier ECB; Tata Sia Airlines raised USD 36 million for import of capital goods; Flender Drvies USD 31.37 million for worki

In the short and medium term, chief financial officers are advising companies to take the right kind of derivatives products depending on their exposure

Among individual shares, Bank of Baroda, Canara Bank, State Bank of India, Indian Bank, and Union Bank of India soared between 21 per cent and 34 per cent during the period

Gurgaon-based ReNew Power has raised a $1-billion project loan through external commercial borrowings, tying up with 12 international banks for the finance.

This transaction is the largest social loan globally, the first social external commercial borrowing (ECB) loan out of India and the largest ECB loan deal from a HFC or private NBFC in India

It looks to raise $1.1 billion in external commercial borrowing

Comments follow huge pressure on ruper versus the dollar due to record outflows from domestic equity markets amid elevated commodity prices and higher US interest rates

The RBI announced five measures on July 6 to further liberalise foreign exchange. The measures are aimed at creating a more enabling environment to attract dollars through banking deposits, ECB, FPI

According to RBI data on external debt released, short-term debt on a residual maturity basis accounted for 44.1% of foreign exchange reserves at the end of March 2022

External Commercial Borrowings (ECBs) accounted for 36.8% of India's external debt as of the end of December 2021

Bank officials said India-centric business had predominant share - funding exports and imports as well as terms loans.

State-owned NTPC has invited a request for proposal (RFP) for raising up to USD 750 million (around Rs 5,570 crore) via ECB to fund its power projects, including renewable energy. "NTPC Ltd is looking to raise external commercial borrowing (ECB) in the form of term loan amounting to USD 500 million plus green shoe option of USD 250 million... accordingly it is requested to quote unconditional and firm rate for raising ECB," the RFP document floated by NTPC on Monday stated. According to the document, the proceeds of the loan shall be utilised towards capital expenditure for ongoing/new capacity addition programme including renewable energy projects, coal mining & washeries, refinancing of existing ECBs/rupee loans availed domestically for capex etc. Last date for submitting bids is January 31, 2022 (by 1500 hrs). The bids will be opened on January 31, 2022 (1515 hrs).

In FY19, lenders had seen a contraction in global loan book after letters of comfort were discontinued

Economic slowdown hits activity, adding fuel to the fire

The airport authority aims to spend a minimum of Rs 5,000 crore each year on the infrastructure in line with the government's announcement that 100 new airports will be developed in five years

No capital came in through the approval route, while the rest of $9,86,681 was by way of issuance of rupee denominated bonds