After a gap of nearly two and half years, Indian Oil Corporation Ltd has raised over INR 1,400 crore from the Indian bond markets.

Indian Oil, which has been taking a hit on its profitability because of certain government policies such as selling petroleum products at subsidised rates, will use the proceeds of the bond issue for meeting capital expenditure of ongoing domestic projects.

According to the company, the issue, which was launched with an original size of INR 500 crore, was subscribed over three times with subscription aggregating approximately INR 1,600 crore. IOC has decided a cut-off coupon rate of 9.28% the lower end of the book building range.

The secured redeemable non convertible bonds opened for subscription on private placement basis on December 15. The ‘AAA’ rated bonds have a maturity of five years with put and call options at the end of the 18th month.

(Sourced from BS)