OIL raises USD 550 mn through overseas bonds issue

State-owned Oil India Ltd (OIL) Wednesday said it has raised USD 550 million debt through an overseas bonds issue.

The issue carries 5.12 per cent fixed rate and is of 10-year tenor, the company said in a statement here.

"The transaction was the first 10-year issuance out of India for a corporate issuer since March 2018 and the largest 10-year issuance of an Indian investment grade issuer in the Reg S only market since January 2017," it said.

The issue, OIL said, was oversubscribed more than 4.5 times and had response from most of the prime investors in Asia, Europe and the Middle East.

"The bonds are listed on Singapore and International Securities Market of London Stock Exchange (ISM)," it said adding OIL is the first oil and gas company from India to list on ISM.

"The listing will enable OIL to reach out to a new investor base and open a new chapter for investor diversification as part of ongoing efforts to develop an international investor base," the statement said.

OIL is India's second largest oil and gas exploration and production company. The government of India holds 63.2 per cent stake in the firm.