IndianOil mops up $1.4 b via bond sale to RBI
New Delhi   19-Jun-2008
IndianOil has so far mopped up around $1.4 billion by selling bonds to Reserve Bank of India under the special market operation, the IndianOil Director-Finance, Mr S.V. Narasimhan, said. "We have sold nearly Rs 6,000 crore worth of bonds to the RBI so far at an average discount of 3.5 per cent," he told NewsWirel8. Mr Narasimhan said discounts have been ranging between 2 and 5 per cent depending on the tenure and term of the bonds. IndianOil's realisation from bond sales has improved sharply, thanks to the special market operation by RBI. In 2007-08, the oil major had sold Rs 9,750 crore worth of bonds in the open market at an average discount of 8-9 per cent. It also sold bonds worth around Rs 4,300 crore in April last months at similar discounts, before introduction of the open market operation. Currently, IndianOil currently holds around Rs 4,OOO, crore worth of disposable bonds and another Rs 4000 crore under collateralized borrowing and lending obligation, Mr Narasimhan said. "We do not intend to shift bonds under CBLO for sale to the RBI," he said. The company will further receive another trance of Rs 7,500 crore bonds for the March quarter, he said. The RBI had started open market operations earlier this month and had started buying or borrowing bonds from state-run oil refining-cum-marketing companies on an outright basis. The central bank pays the companies in dollars for the bonds, at the RBI reference exchange rate to provide cash and equivalent foreign exchange for purchase of crude oil.