IOC raises Rs.1700 crore through bonds

New Delhi : Indian Oil Corporation Limited, the largest refiner in the country has raised Rs. 1700 crore from the Indian Bond Market at 8.14% setting a new benchmark borrowing rate.

IndianOil’s issue of Secured Redeemable Non-Convertible Bonds opened for subscription on private placement basis on May 2, 2013. The ‘AAA’ rated bonds have a maturity of 5 years with put and call option at the end of the 18 months and 36 months. The issue, placed through book-building route received an overwhelming response from all segments of investors which included banks, insurance companies, primarily dealers, mutual funds, financial institutions.

The issue, launched with an original size of Rs. 500 crore, was over-subscribed by over six times with overall subscription aggregating to over Rs. 3000 crore. IndianOil has decided a cut-off coupon rate of 8.14% p.a. The proceeds of bond issue shall be utilised for meeting working capital requirements.

The success of the issue again acknowledges the strong confidence of investors in IOC.