CIO raises Rs 1,500 cr via bonds at lower interest rate than sovereign

Indian Oil Corporation (IOC), the country’s largest oil company, on Thursday raised debt of Rs 1,500 crore through a bond issue at a lower coupon rate than government bonds, said a senior company official.

IOC has priced its five-year rupee bond at a coupon rate of 6.14% tighter than a similar maturing government bond that trades at an annualized yield of 6.29%.

“The issue has generated strong demand from investors and we have been able to secure a very attractive deal,” said CIO (Finance) Director Sandeep Gupta.

The IOC secured an offer worth Rs 5,403 crore in the range of 5% to 6.7% for its issuance.

Gupta said the money raised is for general corporate purposes.

The issuance marks the company’s return to the onshore bond market after a hiatus of more than a year.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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