Corporate debt News

China's corporate debt is a serious and growing problem and the world's second largest economy must take immediate steps to tackle this to avoid new "debt bubble", a top IMF official said on Saturday.

RBI on Wednesday said an entity can borrow a maximum of Rs 5,000 crore in a fiscal through issuance of rupee-denominated masala bonds overseas under the automatic route.

The apex court also asked the Reserve Bank of India (RBI) to provide within six weeks the list of companies whose loans have been restructured under corporate debt restructuring schemes.  

Indian companies raised Rs 2.55 lakh crore from corporate debt issuances during the first eight months of the current fiscal, an increase of 3.2 percent from the same period a year-ago, says a report.  

Warning corporates against ill-effects of over-borrowing, RBI Governor Raghuram Rajan Thursday said debt is like "dynamite" which can harm at times with its "explosive" nature.

The funds will be used mainly for business expansion and to support working capital requirements.

Indian units of British telecom major Vodafone have raised Rs 8,800 crore to refinance corporate debt and for other corporate purposes, law firm Shardul Amarchand Mangaldas said Wednesday.

Fund raising by Indian companies through private placement of corporate debt securities or bonds has more than doubled from the year-ago level to over Rs 46,000 crore in January.

The Reserve Bank of India said it would allow foreign funds to re-invest interest earned from government bond coupons back into markets, but kept overall investment limits unchanged and prevented purchases of short-term corporate debt.

Corporate Debt Restructuring cell of Reserve Bank of India, which has eased loan repayment worth Rs 3.7 lakh crore for top-end businessmen of the country, has refused to reply to an RTI query about its operations saying transparency law does not apply on it.

The Corporate Debt Restructuring Empowered Group (CDR EG), at its meeting held on June 28, 2014, approved the CDR proposal submitted by the company.

More than half of the highly over-leveraged top 500 companies would need more than a whopping Rs 7 trillion or USD 114 billion and three years to deleverage themselves, says a report India Ratings.

Fund mobilisation by Indian firms through private placement of corporate debt securities or bonds plunged by 34 per cent to just over Rs 38,000 crore in October.