Indian Oil Corporation Raises Rs 1,500 Crore Via Bonds

Indian Oil Corporation (IOC), the nation's largest oil firm, on Thursday raised Rs 1,500 crore debt through a bonds issue at a coupon rate lower than government bonds, a senior company official said. IOC priced its five-year rupee bonds at a coupon rate of 6.14 per cent tighter than a similar maturing government bond that is trading at an annualised yield of 6.29 per cent.

"The issue saw strong demand from investors and we were able to get a very attractive deal," IOC Director (Finance) Sandeep Gupta said.

IOC got a bid worth Rs 5,403 crore in the range of 5 per cent to 6.7 per cent for its issuance. Gupta said the money raised is for general corporate purposes.

The issue marks the return of the company to the onshore bond market after a gap of more than a year.