Oil India (OIL) has raised $550 million in an overseas bond offering, creating new milestones for Indian securities in the international capital markets. The dollar denominated 10-year bond offering comes with an annual coupon of 5.125 per cent. The bonds are rated ‘Baa2’ by Moody’s and ‘BBB’ by Fitch.
The bonds are listed on the Singapore and International Securities Market of London Stock Exchange. OIL is the first oil & gas firm from India to list on the ISM. It is also a Reg S offering, which means the bonds need not be registered with the US regulator.
“The transaction was the first 10-year issuance out of India for a corporate issuer since March 2018 and the largest 10-year issuance of an Indian investment grade issuer in the Reg S market since January 2017. The issue was oversubscribed more than 4.5 times and had response from most of the prime investors in Asia, Europe and the Middle East,” OIL said in a statement.
The listing will enable OIL to reach out to a new investor base and open a new chapter for investor diversification as part of ongoing efforts to develop an international investor base, it added.