Indian Oil Corp, the nation’s biggest oil company, plans to raise Rs 12,000 crore through a bonds issue to meet its capital expenditure needs.
The company plans to raise Rs 12,000 crore from domestic as well as overseas market through private placement of bonds.
“IOC has been raising money by issue of bonds in the nature of debentures from domestic as well as overseas markets from time to time to meet its capital expenditure and working capital requirements,” IOC said in a notice sent to shareholders.
A resolution authorising the company board to raise the money will be put to vote at the company’s annual general meeting in September in Mumbai.
“Approval of members through Special Resolution is being sought in line with provisions of the Companies Act, 2013, to enable the company issue bonds, in the nature of debentures up to Rs 12,000 crore (from domestic as well as overseas market) in aggregate, through private placement of bonds as it may be deemed necessary during the period of one year from the date of approval by members within the overall borrowing limit of Rs 1.10 lakh crore,” it said.
IOC had a debt of Rs 52,469 crore as on March 31, 2016.
The company has about Rs 24,500 crore worth of ongoing projects, including the Rs 5,151-crore LNG import terminal at Ennore in Tamil Nadu, Rs 3,150-crore polypropylene plant at Paradip in Odisha and Rs 3,076-crore distillate yield improvement project at its Haldia refinery in West Bengal.
It is also laying two new pipelines and augmenting capacity of two others at a total cost of Rs 7,521 crore. A project to manufacture Euro-IV compliant petrol and diesel at its Gujarat refinery is also underway, which would cost Rs 931 crore.