Nayara Energy, which owns and operates the Vadinar oil refinery in Gujarat, said on Friday it raised ₹2,285 crore in debt through a debenture issue that was oversubscribed.
Announcing the raising of debt through the placement of non-convertible debenture (NCDs) in the domestic market, the company said the issue was oversubscribed by 128.5 per cent over the base size of ₹1,000 crore.
“Proceeds of the issue will be utilised for the refinancing of existing debt, routine capex and general corporate purpose,” Nayara said in a statement.
The secured NCDs are rated ‘AA’ with a stable outlook by CARE Ratings and was offered with at coupon rate of 8.75 per cent with a three-year bullet maturity.
The company had recently repaid its 2018 NCDs of ₹2,400 crore.
“Nayara Energy continues its journey to diversify the fundraising options and optimise the overall cost of funds by exploring and tapping various financing opportunities across instruments, tenure and geographies,” the statement said.
Accelerate growth
Anup Vikal, Chief Financial Officer, Nayara Energy, said the oversubscription reiterates the confidence investors have in the company’s strong parentage, experienced management team, and significant improvement in asset and liability profile.
“We remain committed to accelerate our growth plans in India to become one of the largest integrated energy and petrochemicals complexes in the country,” he said.
“We are focused on maintaining a sustainable level of leverage and strengthening the balance sheet. This NCD issue will provide flexibility in the capital structure and further optimise the interest cost,” he added.
Nayara Energy owns and operates India’s second-largest single-site refinery at Vadinar in Gujarat, with a current capacity of 20 million tonne a year. It is the biggest private fuel retailer, operating a network of over 6,200 petrol pumps across the country.