| A $200 million syndicated loan by Indian Oil Corporation for a residual maturity of 13 months is proposed to be priced as finely as 25 basis points over Libor. |
| The London inter-bank bid offer rate is the international benchmark for raising funds. IOC has given the mandate to ING Vysya, Citibank and Standard Chartered. |
| Similarly, Reliance Industries' (RIL) plan to refinance $348 million loan for a residual period of three years is also being attractively priced. Citibank, ING Vysya, ABN Amro, Standard chartered, HSBC and Bank of Tokyo-Mitsubishi are seeking to arrange the loan at 55-60 basis points over Libor. |
| Bankers said a few international banks such as DBS Bank, Calyon, BNP Paribas and Mizuho are subscribing to syndicated loans originating from India for establishing corporate clientele in India to start with. |
| ECB offers an indirect way for many foreign banks to establish a corporate client base in India without actually having an operating base in India. |
| Even Corporation Bank is planning to raise $50 million for one year at 27 basis points over Libor. Investment bankers may soon get a mandate from the Indian Railway Finance Corporation for refinancing its overseas borrowings. |
| Bankers said the deals will revise the benchmark rates at which the India Inc has been raising funds till date. IOC had set a benchmark for triple AAA corporates last year by raising five-year funds at 65 basis points over Libor. |
| It has been a long way from the 150-200 basis points spread over Libor at which foreign banks used to subscribe to loans from India a few years back. |
| The $200 million loan is part of IOC's major plan to cut its borrowing costs, having hit by a loss for the first time in the first quarter of 2005-06 and with crude price touching a peak of $63 a barrel. The loan will refinance an existing loan with residual maturity of 13 months. |
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