Energy Industry Holds Major Stake In $1.34 Billion Raised By Indian Firms

According to RBI statistics released on Wednesday, Indian firms raised roughly USD 1.34 billion from international markets in October of this year, a 34% decrease from the previous year. 

In October 2020, local enterprises had raised more than USD 2.03 billion from offshore markets.

In a split, the firms raised up to USD 1.32 billion in external commercial borrowings (ECBs) via the automated method.

The remaining USD 1,47,49,994 was raised by a single company, Fortum Solar Plus Pvt Ltd, through the issuance of rupee-denominated bonds (RDBs), sometimes referred to as masala bonds.

According to the RBI statistics on External Commercial Borrowings for October 2021, the firm is involved in the delivery of electricity, gas, and steam air conditioning, and the proceeds of the borrowings will be used to refinance rupee debts.

ONGC Videsh Ltd, which raised USD 600 million to refinance a prior ECB, is a major borrower in the ECB bracket.

Renew Solar Urja acquired USD 147 million, while Indian Oil Corporation raised USD 250 million. The monies would be used for rupee spending by both firms.