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Indian Firms Boost Foreign Borrowing by 25% in May
14 Jul
Summary
- Indian companies' foreign borrowing proposals jumped 25.8% in May.
- Total external commercial borrowings reached USD 4.74 billion last month.
- Major firms like Indian Railway Finance Corporation and NTPC filed substantial proposals.
Proposals for external commercial borrowings (ECB) by Indian companies saw a substantial increase in May 2026. Filings for ECB proposals surged by 25.8 percent compared to the previous month, reaching a total of USD 4.74 billion. This marks a significant recovery after a dip in April.
The majority of these proposals were made under general permission. Notable filings included USD 1.11 billion by Indian Railway Finance Corporation for on-lending and sub-lending purposes. NTPC also filed for USD 750 million for infrastructure development, while Kisetsu Saison Finance submitted multiple proposals totaling USD 499.1 million for similar on-lending activities.
Other companies also leveraged the ECB route for various strategic objectives. REC filed for USD 300 million to refinance existing ECBs, and Equinix India sought USD 240 million for modernization and expansion projects. These borrowings represent loans from recognized non-resident entities to eligible Indian entities.
In parallel, the market for rupee-denominated bonds (RDB) saw filings totaling USD 7.322 million in May. Sahrudaya Health-Care was the sole filer, submitting proposals for Rs 30 crore to refinance rupee loans and Rs 40 crore for local sourcing of capital goods.
