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Indian companies raise $1.34 billion from foreign markets in October; down 34% from last year, says RBI

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As per RBI data, companies raised as much as $1.32 billion by way of external commercial borrowings from the automatic route

Indian companies raised nearly $1.34 billion from foreign markets in October this year, down 34 percent from the year-ago period, Reserve Bank of India (RBI) data showed on December 1.

The domestic firms had raised over $2.03 billion from the overseas markets in October 2020.

In a break-up, the companies raised as much as $1.32 billion by way of external commercial borrowings (ECBs) from the automatic route.

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While, the rest of $14,749,994 was raised by a single firm — Fortum Solar Plus — by issuing rupee-denominated bonds (RDBs), popularly known as masala bonds.

The company is engaged in electricity, gas and steam air conditioning supply and the proceeds of the borrowings are to be used for refinancing of rupee loans, showed the RBI data on ECBs for October 2021.

Major borrowers in the ECB category include ONGC Videsh (OVL), which raised $600 million for refinancing of earlier ECB.

Indian Oil Corporation (IOCL) raised $250 million and Renew Solar Urja $147 million. Both the companies will use the funds for rupee expenditure.

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