Fortum Solar Raised USD 1,47,49,994 by Rupee Denominated Bonds or Masala Bonds – EQ Mag Pro
Mumbai: Indian companies raised nearly USD 1.34 billion from foreign markets in October this year, down 34 per cent from the year-ago period, RBI data showed on Wednesday. The domestic firms had raised over USD 2.03 billion from the overseas markets in October 2020.
In a break-up, the companies raised as much as USD 1.32 billion by way of external commercial borrowings (ECBs) from the automatic route.
While, the rest of USD 1,47,49,994 was raised by a single firm — Fortum Solar Plus Pvt Ltd — by issuing rupee-denominated bonds (RDBs), popularly known as masala bonds.
The company is engaged in electricity, gas and steam air conditioning supply and the proceeds of the borrowings are to be used for refinancing of rupee loans, showed the RBI data on External Commercial Borrowings for October 2021.
Major borrowers in the ECB category include ONGC Videsh Ltd, which raised USD 600 million for refinancing of earlier ECB.
Indian Oil Corporation raised USD 250 million and Renew Solar Urja USD 147 million. Both the companies will use the funds for rupee expenditure.