New Delhi, July 04: State-run Indian Oil Corporation will swap about Rs 1200 crore high cost debt with cheaper loans to reduce its interest burden. "We plan to pre-pay Rs 1200 crore debt which carries over 10 per cent interest through fresh loans that are now available at just around 6 per cent. Talks have already been initiated with various banks and financial institutions and the swap would take place by next year," IOC director (Finance) P Sugavanam said on Friday.

Swapping high-cost borrowings with cheaper loans would bring down the interest burden substantially, he said, adding modalities for the same were being worked out with banks.
He, however, declined to give the names of the banks with which IOC was in discussions.
IOC would prepay a Rs 500 crore loan, which carries an interest rate of over 10 per cent, by September. Banks have already agreed to advance fresh loan at 5.5 per cent per annum. Bureau Report