Tata Steel and Titans: Inside India’s $50 Billion Global Fundraising Frenzy

Indian companies have raised over $50 billion through external commercial borrowings (ECBs) in the current financial year till February, as per the recent data released by the Reserve Bank of India. February alone registered $2.63 billion worth of registrations, showing a consistent demand for foreign funding in the face of tightening domestic credit conditions. Tata Steel was the biggest borrower, raising $750 million for foreign investments, while Varanasi Aurangabad NH-2 Tollway Pvt Ltd raised more than $370 million, mainly for infrastructure expansion and refinancing. Other non-banking finance companies like Mahindra & Mahindra Financial, Cholamandalam Investment, and Vastu Housing Finance were also avid participants, taking advantage of competitive foreign loan rates. The increase in ECBs is explained by a dip in domestic bank lending, which has led firms to borrow from international markets for their requirement of funds. This movement indicates the increasing dependence of Indian corporates on overseas money to fund growth and infrastructure projects.

Source: The Economic Times