IOC raises Rs 1,700 crore via bonds

The AAA bonds havwe a maturity of 5 years with a put and call option at the end of 18 months & 36 months

State-run Indian Oil Corporation, the country’s biggest oil refining and marketing company, has raised Rs 1,700 crore from the domestic bond markets to meet the working capital requirements.  

Indian Oil’s issue of secured redeemable non-convertible bonds opened for subscription on private placement basis on May 2. The ‘AAA’ rated bonds have a maturity of five years with put and call option at the end of the 18 months and 36 months. The company said in a statement that raised the bond at 8.14% setting a new benchmark borrowing rate.

“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,” IOC added.  

The issue was launched with an original size of Rs 500 crore and 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% per annum.