Indian Oil Corporation, the largest corporation of India, has built up the foreign currency loan portfolio of USD 7 billion. The portfolio of USD 7 billion consists of funds lent by banks situated in various countries across globe including USA, UK, Norway, Netherlands, Germany, France, Mauritius, South Africa, Middle East, Japan, Taiwan, Singapore, Australia etc.
This portfolio is even more significant under the current scenario when uncertainties are engulfing the global financial system particularly Euro zone, which is passing through unprecedented economic turbulence. Though, foreign currency loans are available at substantially cheaper rates, the availment of any foreign currency loan is preceded by finalization of complex loan agreements and rigorous due diligence by foreign banks. It may be mentioned that due to interest rate differential coupled with scarcity of foreign currency funds, other Indian corporates have been vying hard for more of these funds. However, IndianOil, like ever before, has been able to attract continuous flow of foreign funds due to its strong positioning in the international market.
In spite of uncertainties in global financial markets and tight domestic monetary policy, IOC has been able to garner required funds for its working capital and projects.