Ioc Raises Largest-Ever Syndicated Loan Of $500 Million

Indian Oil Corporation (IOC) has raised the largest-ever syndicated loan of $ 500 million by any Indian corporate. The loan agreement was signed in Singapore yesterday.

IOC has raised the loan for a 360-day period for which it managed to attract the same interest rate that applied to an earlier borrowing for 180 days.

Originally, the corporation had gone in for a $ 400 million loan which was oversubscribed by $ 100 million. IOC has exercised the greenshoe option of retaining the excess amount.

The lead bankers to the loan are ABN Amro Bank, Credit Bank of Brussels and Dresdner Bank Germany with the participation of 25 other banks.

 

The loan has a lock-in pricing for the first six months and, for the nextsix months, the pricing is linked to Indias long-term credit rating by Standard and Poors, and Moodys.

For this loan, IOC was able to attract a low all-inclusive interest rate of 25.5 point over Libor (London inter-bank offered rate). This implies that foreign investors are willing to offer a good price for IOCs proposed issue of global depositary receipts.