Indian Oil raises ₹1,500 cr via bonds at interest rate lower than sovereign
PremiumIOC priced its five-year rupee bonds at a coupon rate of 6.14% tighter than a similar maturing government bond that is trading at an annualised yield of 6.29%.
Returning to the onshore bond market after more than a year, Indian Oil Corporation (IOC) on Thursday raised ₹1,500 crore debt through a bonds issue at a coupon rate lower than government bonds, news agency PTI reported quoting a senior company official.
IOC priced its five-year rupee bonds at a coupon rate of 6.14% tighter than a similar maturing government bond that is trading at an annualised yield of 6.29%.
"The issue saw strong demand from investors and we were able to get a very attractive deal," IOC Director (Finance) Sandeep Gupta said. He said the money is raised for general corporate purposes.
IOC got bid worth ₹5,403 crore in the range of 5% to 6.7% for its issuance.
Recently, Reuters reported that IOC will increase crude purchases from Iraq by 11.5% in 2022 to 390,000 barrels per day (bpd), partly to make up for a shortfall from Mexico and a possible supply cut from Kuwait.
Iraq is the top supplier of oil to India and its market share there is set to rise as another refiner Hindustan Petroleum Corp will also buy more crude from the Middle Eastern nation.
The state-owned company is also exploring the option of acquiring IL&FS Paradip Refinery Water Ltd, the crisis-hit IL&FS has said in an affidavit filed before the insolvency appellate tribunal NCLAT.
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However, the Uday Kotak-led board has not shared any financial details while updating the tribunal on the progress of the group's resolution process.
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