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.
First Published: Sunday, January 17, 2010, 12:40