Indian industry borrowed $1.05 billion from foreign markets last month, including through rupee denominated bonds (RDBs).
In contrast, the borrowings were $1.32 billion in May last year. However, the two sets of data are not comparable as the RDB route was not there until September. As per RBI data, of the total in May this year, external commercial borrowings (ECB) and RDBs contributed almost equally at $523.95 million and $525.76 million respectively.
But June onwards, it may be difficult for companies to float rupee bonds overseas as they will be subject to scrutiny from Reserve Bank’s Foreign Exchange Department before every such issue.
The RDB route has become a popular source of fund raising.
