RBI Unveils March 2025 ECB/FCCB/RDB Data: Corporate Borrowings Stay Robust, Costs Ease

The Reserve Bank of India (RBI) has released its latest data on External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB), and Rupee Denominated Bonds (RDB) for March 2025, highlighting a resilient appetite for overseas funding among Indian corporates amid a shifting global financial landscape.

Key Highlights:

Strong ECB Pipeline: As of March 2025, Indian companies continued to file significant ECB proposals, building on the $2.82 billion in plans submitted in February. The total outstanding ECB stock stood at $190.4 billion as of September 2024, with the private sector accounting for 63% of this figure, underscoring their growing reliance on international debt markets.
Surge in Investment Announcements: In the first nine months of FY25, investment announcements reached ₹32.01 lakh crore-a 39% jump over the previous year-driven by robust private sector participation, which contributed nearly 70% of the total.
Cost of Borrowing Falls: The cost of ECBs has been on a downward trajectory, with average rates dropping by 12 basis points year-on-year to 6.6% between April and November 2024. Notably, in November 2024, the cost fell further to 5.8%, making overseas borrowing more attractive for Indian firms.
Purpose of Borrowings: Nearly half of ECB registrations in FY24 were earmarked for importing capital goods, modernization, local capital expenditure, and new projects, reflecting a focus on capacity expansion and technology upgrades.
Clarification on Liabilities: The RBI clarified that the actual ECB stock is $190.4 billion, correcting misreports that included unrelated foreign portfolio investments in the tally.

With hedging practices remaining strong and borrowing costs easing, Indian corporates are well-positioned to leverage global capital for growth and modernization.

Sources: Business Standard, RBI, State Bank of India Report