Foreign currency convertible bonds are hot favourites this year for companies that want to raise cheap money overseas.
Since the beginning of calendar 2004, as many as 12 companies have announced plans to float FCCBs, valued at $1.9 billion (about Rs 8,500 crore).
In fact, six companies have already raised $1.08 billion (about Rs 4,800 crore) through FCCBs.
Corporate India's appetite for FCCBs is matched by the fervour among overseas investors to take an increased India exposure.
FCCBs allows these investors to invest in the Indian growth story with a 3-5 year perspective, without having to take the risk of taking an equity risk. Such is the global appetite for quality Indian paper that the $150 million Indian Hotels FCCB issue in February was subscribed more than 16 times.
Some of the other companies which received huge response to their FCCB issues include Reliance Energy, ACC, Tata Motors, Zee Telefilms, Ashok Leyland and Bharti Tele-Ventures.