Indian Oil to raise up to $1.5 billion from international bond sale

The nations’ largest oil marketing and refining company Indian Oil Corporation (IOC) has hit the international bond market to raise up to $1.5 billion. The state-run company is looking to raise between $750 million and $1.5 billion through the US-dollar- denominated notes, banking sources said on Friday.

The bonds have been rated Baa2 by Moody’s and BBB- by Fitch Ratings. The tenor of the issue is not known immediately. Moody’s has also affirmed the national energy major’s rating, expecting leverage levels to stay within the tolerance level despite negative free cash flow on account of high shareholder returns and capital spending,