In a move that reiterates the strong confidence of the investors in the fundamentals of IndianOil, the nation's flagship hydrocarbon Company has raised Rs. 1,295 crore from the Indian Bond market.
IndianOil's issue of Secured Redeemable Non-Convertible Bonds opened for subscription on private placement basis on April 24, 2012. Launched with an original size of Rs. 500 crore, the issue was oversubscribed by over three times with subscription aggregating to approx. Rs. 1,600 crore.
The 'AAA' rated bonds have a maturity of five years with a put and call option at the end of three years. The issue, placed through book-building route, received an overwhelming response from all segments of investors which included banks, insurance companies, primary dealers, mutual funds, financial institutions.
IndianOil has decided a cut-off coupon rate of 9.35% p.a. The proceeds of bond issue shall be utilised for meeting capex of ongoing domestic projects and working capital requirements.