This coupon rate is lower than the prevailing annualised yield of benchmark G-Sec for similar maturity
This coupon rate is lower than the prevailing annualised yield of benchmark G-Sec for similar maturity
Indian Oil Corporation (IOC), the nation’s top oil firm, raised ₹2,500 crore in debt through non-convertible debentures (NCD) at an interest rate lower than government bonds, its director (finance) Sandeep Gupta said on Friday.
“Today, Indian Oil fetched a competitive price of a 5-year unsecured NCD issue at an annual fixed coupon of 7.14%,” he told PTI.
This coupon rate is lower than the prevailing annualised yield of benchmark G-Sec for similar maturity.
The prevailing annualised yield of 5-year G-Sc is at 7.16%.
The NCDs, which will be used for general corporate purposes, including capital expenditure, were rated AAA by Crisil and Icra.
“Pricing of the NCS was undertaken over online bidding platform of NSE Ltd with a base size of ₹1,000 crore and greenshoe of ₹1,500 crore, aggregating to ₹2,500 crore,” he said.
The issue got an overwhelming response and was oversubscribed by more than 8 times of the base issue size by investors, encompassing retirement funds and banks.
The bonds will be allotted to investors on September 6, he added.
IOC had previously in February raised ₹1,500 crore through a bonds issue at a coupon rate of 6.14%. That was lower than similar maturing government bond trading at an annualised yield of 6.29%.
That issue marked the return of the company to the onshore bond market after a gap of more than a year.
