Search This Blog

Loading...

IndianOil raised over Rs. 1,400 crore from the Indian Bond Markets  

IndianOil mobilises bonds of over Rs. 1,400 Crore at 9.28%

Indian Oil Corporation Limited (IndianOil) has raised over Rs. 1,400 crore from the Indian Bond Markets after a gap of nearly two and half years.

IndianOil’s issue of Secured Redeemable Non-Convertible Bonds opened for subscription on private placement basis on December 15, 2011. The ‘AAA’ rated bonds have a maturity of 5 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% p.a., payable annually. The issue was well received by institutional investors particularly FIIs and banks. The issue, which was launched with an original size of Rs. 500 crore, was oversubscribed by over three times with subscription aggregating to approx. Rs. 1,600 crore. IndianOil has decided a cut-off coupon rate of 9.28%, i.e. the lower of the book-building range. 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.

The success of the issue once again acknowledges the strong confidence of investors in IndianOil.

AddThis Social Bookmark Button

0 comments

Post a Comment