IOC raises $300 mn debt from US market

Indian Oil Corp raises 300 million dollars through a bonds issue in the US, the state-run company's first private placement in overseas capital markets.

Indian Oil Corp has raised 300 million dollars (about Rs 1,200 crore) through a bonds issue in the US, the state-run company's first private placement in overseas capital markets.

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The Note Purchase Agreement for the issue was signed by IOC director (finance) SV Narasimhan in New York on May 31, a company press release said in New Delhi.

"The bond was issued at a highly competitive fixed rate of interest on an unsecured basis and had an average maturity of approximately 10 years," it said.

The proceeds would be used to fund capital expenditure requirements for 2007-08.

Bank of America Securities LLC, USA, and Citigroup Global Capital Markets, USA, were the joint placement agents for the bond issue.

IOC launched its 200 million dollar issue in April 2007 and, but increased the amount to 300 million dollars after getting good response from investors in the US.

"Thirteen investors, representing a broad cross-section of both US as well as international financial institutions, participated in the issue," it said.

The issue represented IOC's first private placement in the offshore capital markets, the release said.