Nayara Energy raises Rs 2,285 cr via NCDs, issue sold out twice over

Nayara Energy has raised Rs 2,285 crore through placement of Non-Convertible Debentures (NCDs) in the domestic market. A statement from the company said that the issue got over-subscribed by 128.5 per cent over the base size of Rs 1,000 crore.

“Proceeds of the issue will be utilised for refinancing of existing debt, routine capex and general corporate purpose. The secured NCDs are rated ‘AA’ with Stable outlook by CARE Ratings and was offered with a coupon rate of 8.75 per cent with a three-year bullet maturity,” Nayara Energy said.

“The company had recently repaid its 2018 NCDs amounting to Rs 2,400 crore,” the company added.

Nayara Energy also said that it plans to continue diversifying the fund-raising options and optimize the overall cost of funds.

Anup Vikal, Chief Financial Officer at Nayara Energy said, “We are focused on maintaining a sustainable level of leverage and strengthening the balance sheet. This NCD issue will provide flexibility in the capital structure and further optimize the interest cost.”

“We remain committed to accelerate our growth plans in India to become one of the largest integrated energy and petrochemicals complexes in the country,” Vikal added.

In 2017, Essar Oil was acquired by Russia’s Rosneft and an investment consortium led by Trafigura & UCP Investment Group. The refinery and retailing business was rebranded as Nayara Energy shortly after the takeover. Nayara Energy has around 6,200 fuel retailing outlets across the country.