GAIL issues Rs 750 cr bonds; oversubscribed 5 times

GAIL (India) Ltd on Tuesday said it has launched bonds of Rs 500 crore with a green-shoe option of Rs 250 crore. “The issue received an over whelming response from the market, being oversubscribed by around five times. The total quantum of Rs 750 crore has been mobilised at a cut off rate of 9.14 per cent a year, which is the lowest rate achieved in recent times,” the company said in a statement. The bonds have been issued to partly meet its capital expenditure plan for expansion of various projects and will be repaid within five to eight years. There is a call option at the end of fifth year.