IOC`s USD 500 mn bond issue subscribed 13 times
New Delhi: State-owned Indian Oil Corp`s (IOC) maiden US dollar denominated bonds issue has received an overwhelming response, with the USD 500 million issue being subscribed 13 times.
The five-year issue got orders of USD 6.5 billion, IOC Director (Finance) S V Narasimhan said here.
This is perhaps the highest level of over subscription of any Asian corporate bonds issue denominated in US dollars in the recent times.
The bond, priced at 205 basis points over the benchmark US dollar mid-swaps rates, will be used by IOC to fund capital expenditure for its vast portfolio of ongoing projects including 15 million tons a year refinery at Paradip in Orissa.
At present, IOC has about Rs 47,000 crore of debt including USD 3 billion of foreign-currency loans.
"The exceptional response received by our debut US dollar bond issue is an eloquent testimony to the confidence that global investors have reposed in IOC and an acknowledgement of the strong fundamentals of the Indian economy," he said.
"This transaction also broadens our international investor base substantially and enhances our financial flexibility for the future."
Deutsche Bank AG, HSBC Holdings Plc and Standard Chartered Plc managed the sale, which followed meetings with investors in Hong Kong, Singapore and London.
More from India
More from World
More from Sports
More from Entertaiment
- Pak forces will teach Zee News what real surgical strike is: Hafiz Saeed
- Revealed - How Indian Army hit terror camps across LoC!
- DNA: Indian Army carries out surgical strikes across LoC
- Is it time for India to respond militarily to Pak terror instead of peace talks?
- Panel discussion on Hafiz Saeed's reaction after Indian Army surgical strikes
- Hafiz Saeed threatens Zee News, says Pak forces will teach what real surgical strikes are
- Pak postpones SAARC Summit after five member states pull out of conference: As it happened
- After threatening Zee News, Hafiz Saeed says PM Modi, Ajit Doval staged `surgical strike drama'
- India's surgical strikes: Pakistan buries slain terrorists to hide evidence, asks Masood Azhar to go mum
- Who is Chandu Babulal Chauhan and why India wants to bring him back from Pakistan - Read