New Delhi, Mar 13 (KNN) Indian companies, including non-banking finance firms, submitted proposals worth USD 4.0 billion to the Reserve Bank of India (RBI) in January 2025 to raise funds through external commercial borrowings (ECB).
According to RBI data, USD 1.97 billion of this was through the automatic route, while USD 2.02 billion came via the approval route. This marked a significant drop from December 2024, when corporates had filed ECB proposals worth USD 9.54 billion.
Among the notable companies seeking ECBs, the Export-Import Bank of India applied for $1.0 billion for on-lending and sub-lending purposes.
Power Grid Corporation of India Ltd sought USD 360 million with a seven-year maturity, also for on-lending.
NMDC Data Centre Private Ltd filed for a USD 175 million ECB with a three-year maturity to fund local sourcing of capital goods.
The rising trend in ECBs has been evident in the ongoing financial year. During April-December 2024, net ECB inflows tripled to USD 15.6 billion compared to the same period in 2023.
Lower global interest rates and a reduced risk premium have contributed to this surge. Gross ECB disbursements reached USD 36.6 billion in the first nine months of FY25, up from USD 26.1 billion in FY24.
Meanwhile, principal repayments stood at USD 21 billion, slightly higher than the USD 20.7 billion recorded in the same period last year.
The strong demand for ECBs highlights Indian firms’ growing reliance on external funds amid evolving global financial conditions.
(KNN Bureau)
