Indian companies' external commercial borrowings fell to $1.35 billion in November from a nine-month high of $4 billion in October, data from the Reserve Bank of India showed.
Out of the $1.35 billion, around $165 million was raised for import of capital goods, $110 million was raised for modernisation of existing facilities and $190 million towards financing new projects.
Sintex Industries, Pokarna Ltd and Firstsource Solutions had raised funds through ECBs to refinance their foreign currency convertible bonds payout.
Since April, companies have raised $20 billion through ECBs for various purposes, a trend similar to the corresponding period last year.
The uncertainty over the US fiscal cliff and its impact on global markets is likely to have turned banks cautious towards companies from emerging markets.
Further, the flux in European debt crisis management has also kept mood subdued globally and most European banks now lend a fraction of the amount they used to earlier to companies from emerging markets.
Companies continued to shun the foreign exchange convertible bonds option to raise funds and no FCCBs were issued during October. Companies that had raised funds through FCCBs in the past were hit hard after their share prices fell below the conversion prices in the aftermath of the global financial crisis.