Chennai Petroleum Corp Ltd, a unit of state-owned Indian Oil Corp (IOC), plans to raise up to Rs 1,000 crore through a domestic bonds issue during the current fiscal to meet financing needs.
The board of directors of Chennai Petroleum Corp Ltd (CPCL) have approved raising "funds through domestic bonds up to Rs 1,000 crore during the FY 2020-21 through private placement, towards balancing the short term/long term (borrowing) mix," the firm said in a regulatory filing.
The proposed bond issue would be within the overall borrowing limit of Rs 10,000 crores approved by the shareholders in August last year.
The company had a borrowing of Rs 2,952.77 crore as on March 31, 2020.
It further said because of "losses during the financial year 2019-20, the Board has not recommended any dividend."
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