Thanks to aggressive acquisition of crude assets abroad, government-owned BPCL in addition to ONGC are laid upwards to overtake Reliance Industries inwards overseas fundraising inwards 2016-17. Reliance was the topper alongside corporate Republic of Republic of India inwards raising funds during the past times 5 years.
The alter inwards the league tables comes against a backdrop of a slowdown inwards fundraising past times Indian corporates during the year. Overseas fundraising by Indian companies slowed to $19.02 billion inwards 2016-17 from $21.06 billion inwards 2015-16.
BPCL in addition to ONGC raised $4.9 billion inwards 2016-17 against $1.65 billion raised past times Reliance. ONGC raised $2 billion in addition to State Bank of Republic of Republic of India raised $1.7 billion.
Analysts said Reliance was slowing novel investments in addition to its requirements of funds had declined substantially. The state-owned crude companies, on the other hand, are raising funds for acquisitions abroad, which led to their postulate for dollar-denominated loans.
Reliance has the biggest appetite for funds, having raised $14.85 billion over the past times 5 years to fund its telecom services in addition to expand its petrochemicals capacity.
“Most of the fundraising past times Reliance immediately is to refinance former loans in addition to it refinanced loans worth $1.75 billion merely this week,” said a banker.
ONGC in addition to BPCL raised $9.1 billion in addition to $6.5 billion, respectively, inwards the past times 5 years, according to statistics with the Reserve Bank of India.
Last year, a consortium of state-owned crude companies led past times ONGC, BPCL in addition to Oil Republic of Republic of India had invested $3.2 billion to teach stakes inwards 2 Russian oil fields. The funds were raised abroad because involvement rates were lower overseas, said a banker.
Bankers said fundraising past times Indian companies would climb inwards 2017-18 on a revival inwards economical activity. “There volition locomote an increase inwards the capital needed past times Indian companies. As Indian banks volition non locomote able to come across this demand, exceed corporates volition borrow abroad, where the rates are better,” said Prabal Banerji, caput of international finance at the Bajaj group.
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