IOC raises Rs 1,700 cr through domestic bond

State-owned Indian Oil Corp (IOC) today said it has raised Rs 1,700 crore through a domestic bond issue at a new benchmark low interest rate of 8.14 per cent.

IOC's issue of Secured Redeemable Non-Convertible Bonds opened for subscription on private placement basis today and received an "overwhelming response from all segments of investors", it said in a statement here.

"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 3,000 crore," it said.

IOC, which decided a cut-off coupon rate of 8.14 per cent per annum, will use the proceeds for meeting its working capital requirements.

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.

"IOC, the largest refiner in the country, has raised Rs 1,700 crore from the Indian Bond Market at 8.14 per cent, setting a new benchmark borrowing rate," the statement said.

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 success of the issue again acknowledges the strong confidence of investors in IOC," it added.