GSPC raises Rs 3,000cr through bond markets to meet capex need
Ahmedabad: Gujarat State Petroleum Corporation (GSPC) has raised Rs 3,000 crore through the bond market for meeting the capital expenditure requirement.
The proceeds from the bond issues will be used to meet capex requirements of Exploration & Production (E&P) activities and for refinancing the existing higher cost short- term loans, GSPC said in a statement yesterday.
It said the bonds were raised at the competitive interest rates of 9.39 percent for 8-year period, 9.45 percent for 10-year duration and 10.45 percent for 60-year bonds. The bonds are being listed on WDM segment of NSE and would be tradeable soon.
GSPC recently entered the bond market for raising Rs 3,000 crore of debt by issuing three different bonds having varying maturities of 8 years, 10 years and 60 years.
The bond issue met with an overwhelming response from the financial market. Against the total size of Rs 3,000 crore (including Green Shoe option of Rs 1,500 crore), the total bids received were of Rs 10,100 crore, the statement said.
The arrangers for issue were Trust Capital, ICICI Bank and Axis Bank.
GSPC had tied up in 2010 for Rs 3,000 crore term loan through a consortium of 15 banks, led by the Bank of Baroda to finance its Deen Dayal field in KG Basin on coast of Andhra Pradesh.
The Deen Dayal West (DDW) is being currently developed for commercial production. Gujarat Government holds a majority equity stake in the integrated energy company at 91.35 percent.
The company also hold working interests in 15 production fields in Cambay basin. Currently, it holds working interests in 64 onshore and offshore exploration and production blocks both in India and overseas.
In all, 53 of these blocks are located in India and 11 are located in Australia, Egypt, Indonesia and Yemen, the release said.