IOC raises $500m via bonds
New Delhi   27-Jul-2011

IndianOil (IOC) has raised $500 million via dollar bond issue. The issue was over subscribed nearly four times.

“The deal was finalised through the book building route for which IOC received an overwhelming response from investors across the globe,” the company said.

“About 71 per cent of investor contribution originated from Asia while investors from Europe and the US contributed 25 per cent and four per cent respectively,” it added. This is the second bond issue by IOC. The bonds will have a tenure of 10 years.

“The exceptional response received by our dollar bond issue is an eloquent testimony to the confidence reposed by the global investors in IOC,” said P K Goyal finance director at the government-run refiner. IOC would utilise the funds to meet its capital expenditure, as it faces cash crunch due to rising losses for selling petroleum products.