Indian Oil Corporation Ltd on Thursday said it has raised Rs 1,700 crore from the domestic bond market at 8.14 per cent setting a new benchmark borrowing rate. The proceeds of the bond issue shall be utilised for meeting working capital requirements.
IOC’s issue of secured redeemable non-convertible bonds opened for subscription on private placement basis on May 2. The AAA rated bonds have a maturity of 5 years with put and call option at the end of the 18 months and 36 months, the largest fuel retailer said in a statement.
The issue, placed through book-building route received an overwhelming response from all segments of investors which included banks, insurance companies, primarily dealers, mutual funds, financial institutions.
The issue, launched with an original size of Rs 500 crore, was subscribed over six times with overall subscription aggregating over Rs 3,000 crore. IOC has decided a cut-off coupon rate of 8.14 per cent per annum.