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India Inc overseas borrowing increases 65 pc in May.


Date: 23-06-2009
Subject: India Inc overseas borrowing increases 65 pc in May
MUMBAI: Overseas borrowings by India Inc increased by 65 per cent to $494 million in May compared to the previous month.

The total overseas loans raised by 35 companies through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCB) moved up from $298 million in April to $494 million in May, an RBI release here today said.

Of the total overseas borrowings, $326 million were raised through automatic route and $167 million was mopped up through approval route.

The ECB data for May showed that most of the companies raised overseas funds for import of capital goods, modernisation, overseas acquisition among other things.

Bhushan Steel raised $20 million for rupee expenditure, while Bajaj Hindustan raised the similar amount for foreign currency convertible bonds buyback.

Suzlon Energy raised over $61 million under the approval route for buy back of its FCCB, while Bharat Petroleum Corp raised $25 million in the month.

Source : The Economic Times

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