IOC raises USD 500 million through overseas bonds
Bhopal   28-Jul-2011

State-owned IndianOil has successfully raised USD 500 million through an overseas bonds issue to fund its capital needs.

The issue “was finalised through the book-building route for which IOC received an overwhelming response from investors around the globe,” company said in New Delhi. The issue was oversubscribed by about four times and IOC received offers to the tune of about USD 2 billion.

“About 71 per cent of investor contribution originated from Asia while offshore investors from Europe and the US contributed 25 per cent and 4 per cent, respectively,” it said. The bonds will have a tenure of 10 years and be utilised for meeting part of IOC's capital expenditure requirements.

The deal, which was concluded earlier this week, was the second international bond issue of the company, the first being in January last year. IOC Director (Finance) P K Goyal said: “The exceptional response received by our US dollar bond issue is an eloquent testimony to the confidence reposed by the global investors in IOC, India’s only corporate in Top 100 of the Fortune Global 500 listing.”