Companies With Foreign Currency Debt

Alchemist · #1 18th December 2011, 06:17 PM

Falling Rupee may prove to be a nightmare for companies who has taken foreign currency debt.

For example, Bharti Airtel is expected to report an MTM loss of Rs 4000 crore if the Rupee stays at Rs 53.5.

Quote:

Analysts expect mark to market (MTM) losses of over Rs 4,000 crore if rupee sustains at 53.5 against the dollar. The company has to payout 12 per cent of its $11 billion foreign debt this quarter. The loan value of foreign debt has increased by Rs 4,000 crore in the second quarter of FY’12.

Bharti Airtel slumps on forex concerns, TRAI order

Here is a list of some of the companies with foreign currency debt:

Reliance Communications
Jaiprakash Associates
Suzlon Energy
Zenith Infotech (has already defaulted)
Subex
Moser Baer
Financial Technologies
Tata Motors
Tata Steel
JSW Steel
Orchid Chemicals
GTL Infrastructure
Sterling Biotech
3i Infotech
Hotel Leela
Bartronics

All the firms in the above list have FCCB debt.

Many companies like Bharti have pure debt, which is not convertible.