HPCL to raise $200 mn via ECBs

Oil refiner and marketing company Hindustan Petroleum Corp Ltd (HPCL) is planning to raise about $ 200 million (Rs 1,080 crore) abroad to fund its capital expenditure.

A top executive at an international bank with presence in India said the state-owned oil company had sought requests from bankers for its proposed external commercial borrowing (ECB).

“We are planning to raise funds to finance some of our projects. We will be raising a $200 million five-year loan via ECB shortly,” said a senior HPCL official.

Prior to this, HPCL had last September raised a $465 million five-year loan at 165 points above Libor. Lead managers for the issue were State Bank of India (SBI) along with two international banks—Bank of Tokyo-Mitsubishi and Sumitomo Mitsui Banking Corp.

Another public sector bank official said that in anticipation of a rise in demand for foreign currency resources, Indian companies have raised over $3.5 billion through bonds and loans.

Indian companies have filed application with the Reserve Bank of India to raise $18.31 billion between January and July, according to the central bank data.