State-owned Indian Oil Corporation (IOC) today said it has raised over Rs 1,400 crore from the domestic bond markets after a gap of nearly two-and-a-half years.
"IOC's issue of Secured Redeemable non-convertible bonds opened for subscription on private placement basis on December 15, 2011," the company said in a press statement here.
The 'AAA' rated bonds have a maturity of five years with put and call option at the end of the 18th month.
"The issue has been placed through book-building route in a coupon range of 9.20% to 9.45% a annum, payable annually," it said.
Stating that the issue was well received by institutional investors particularly FIIs and banks, IOC said the issue, which was launched with an original size of Rs 500 crore, was oversubscribed by over three times with subscription aggregating to about Rs 1,600 crore.
"IOC has decided a cut-off coupon rate of 9.28%, i.e. The lower of the book-building range," it said.
As per market sources, this is one of the finest pricing achieved by any corporate in recent times.
The proceeds of bond issue shall be utilised for meeting capex of ongoing domestic projects, IOC added.
