Easier ECB rules: OMCs look to raise $1.4 billion in first tranche

On October 3, the RBI allowed the OMCs to raise dollars directly from overseas markets without a need for hedging

State-run oil-marking companies have decided to raise around $1.4 billion in the first tranche, following the Reserve Bank of India’s (RBI) recent decision to ease rules for raising foreign currency loans overseas. 

Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), and Indian Oil Corporation (IOC) are seeking quotations for rates from various lenders to raise the funds under the relaxed external currency borrowing (ECB) norms, to meet working capital requirements, which mainly arise out of crude oil purchases.

“We are looking to raise $300 million and an additional $200 million as a green shoe option. We have just asked for proposals, and