IOC raises Rs 1000cr through bonds issue

Indian Oil Corp, country's largest refiner, has raised Rs 1000 crore though a bonds issue in less than two working days.

The Rs 1000 crore secured redeemable non-convertible bonds issue opened for subscription on private placement basis on May 30 "But garnered commitments of approx Rs 2400 crore from investors within two days of opening," a company press release said today.

With a maturity period of seven years and a 'put and call' option at the end of the 5th year, this issue has been placed through a book building route, in a coupon range between 7.15% to 7.45% per annum, payable annually.

"The issue was well received by all the segments of institutional investors particularly banks, mutual funds, insurance companies and others. Within two days of issue opening, IOC preclosed the issue on May 31, 2005 at a cut-off coupon rate of 7.15%, the lowest end of the book building range," it said.

AK Capital Servies and ICICI Securities acted as book running lead arrangers to the issue while SBI Capital Markets, Centrum Finance and UTI Bank acted as arrangers to the issue.