IOC to raise $900 million debt in overseas market
New Delhi   30-May-2014

The country's biggest refiner IndianOil BSE -0.10 % will raise $1.65 billion debt in overseas market in the current financial year. The company will raise $900 million through external commercial borrowings to replace short-term costlier loan while another $750 million will be raised over the financial year, its director finance PK Goyal said.

The overseas debt interest rate was around 3 per cent - 3.5 per cent, he said. The company raised $1.17 billion foreign debt in the last fiscal. IndianOilBSE -0.10 % will invest Rs 16,600 crore toward business expansion in 2014-15. The state-run firm posted a steep 36 per cent fall in its net profit for the fourth quarter of last fiscal at Rs 9,389.85 crore as the government did not compensate it for the under recoveries and its refining margins also shrank.

The company had reported Rs 14,512.81 crore net profit in the corresponding period previous fiscal. Total income for the quarter, however, increased by 5 per cent to Rs 1,35,465.86crore from Rs 1,28,627.81 crore for the quarter ended March 31, 2013.

The company, which owns eight refineries, earned $2.17 on every barrel of crude oil turned into fuel as against a gross refining margin $3.33 per barrel in Q4 of 2012-13. IndianOil chairman R S Butola said company had got a lump sum cash subsidy for more than one quarter in January-March of 2013.