India Inc has raised more debt capital in FY24 from both local and overseas investors than what they did in the preceding fiscal, supported by increasing appetite for investing in Indian companies.
Bond issuances during 2023-24 grew by about 15% to Rs 8.6 lakh crore as against Rs 7.5 lakh crore earlier, Reserve Bank of India said in its state of the economy report.
Corporate also received higher funds through external commercial borrowings in FY24.
Cumulatively during 2023-24, registrations at $49.2 billion, and disbursements at $38.4 billion as well as net inflows at $ 9.5 billion under ECBs were substantially higher than the levels recorded in FY23, the RBI report said.
“Growing demand from long-term domestic investors and foreign players has facilitated raising of larger funds at affordable rates in the debt market by corporates and banks,” economic researchers at RBI said.
The central bank maintained that the views expressed in the state of the economy report was of the researchers, who were guided by deputy governor Michael Debabrata Patra.
More than 70% of ECBs raised during FY24 were effectively hedged in terms of explicit hedging, rupee denominated loans or loans from foreign parents, limiting the impact of external shocks, they said.
