IOC reaches domestic bond markets to raise Rs 1,400 cr

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oi-Monika

By Monika Nihalani

Published: Saturday, December 17, 2011, 12:44 [IST]

Indian Oil Corporation (IOC) which operates the largest and the widest network of fuel stations in the country raised over Rs 1,400 crore of funds from the domestic bond markets after a gap of nearly two-and-a-half-years.

The proceeds of bond issue shall be used in capex of ongoing domestic projects.

"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.

The bonds are rated as ‘AAA’ and have a maturity of five years with put and call option of the 18th month.

"The issue has been placed through book-building route in a coupon range of 9.20 percent to 9.45 percent per annum, payable annually," it said.

The company stated that the issue was well received by institutional investors, particularly foreign institutional investors and banks.

IOC further said that it was launched with an original size of Rs 500 crore and was subscribed over three times, with subscription aggregating to about Rs 1,600 crore.

"IOC has decided a cut-off coupon rate of 9.28 percent, i.e. the lower of the book-building range," it said.

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