Indian companies registered $7.05 billion in external commercial borrowings and foreign currency convertible bonds in September, down 13.3% from $8.13 billion in August, according to data released by the Reserve Bank of India.

Of the total, $6.71 billion was registered under the general permission route, while $337 million was recorded under the special permission route. The latter comprised three borrowings by InterGlobe Aviation Ltd for importing capital goods. Public sector companies and state-backed financial institutions accounted for several of the larger borrowings during the month, alongside private financial services, telecommunications and infrastructure companies.

The National Bank for Financing Infrastructure and Development registered a $1-billion borrowing for on-lending and sub-lending activities, while Hindustan Petroleum Corp Ltd raised $500 million for general corporate purposes. Housing and Urban Development Corp Ltd registered a $ 500 million borrowing to refinance rupee loans, while REC Ltd raised $300 million for general corporate purposes. NHPC Ltd registered a borrowing equivalent to $254.51 million for working capital requirements. Shipping Corp of India recorded a $100.45 million borrowing to refinance rupee loans.

Among private sector borrowers, Sammaan Capital Ltd registered $300 million for on-lending and sub-lending, while IIFL Home Finance Ltd raised $150 million for the same purpose. Vodafone Idea Ltd registered $150 million for local sourcing of capital goods, while OneWeb India Communications Pvt Ltd recorded $75 million for importing capital goods. InterGlobe Aviation registered three borrowings totalling $336.94 million under the special permission route, with maturities ranging from seven years to over 12 years.

The September data also included a $30.6-million FCCB registration by India Shelter Finance Corp Ltd for on-lending and sub-lending activities.

Among unusually long-tenor borrowings, Mangang Constructions Pvt Ltd registered a $1-billion ECB with a 24-year maturity, while Danube Industries Ltd recorded a $921.1-million borrowing for 20 years. Both were for general corporate purposes. Visakhapatnam Multi Cargo Bulk Terminal Pvt Ltd also registered a $2.88-million borrowing with a maturity of 25 years and one month to finance a new project.

The borrowings underscore sustained demand for overseas funding from infrastructure, energy and financial services companies. The RBI's concessional swap facility allows eligible borrowers to lower their currency hedging costs, although the monthly data does not indicate how much borrowing activity can be attributed to the scheme.

With the facility available until December 31, overseas fundraising by eligible public sector entities could continue to support ECB activity in the coming months.