Indian Oil raises Rs 1,290 crore in debt

• The funds raised through this issue will be utilised for, inter alia, refinancing of existing borrowing and/or funding of capital expenditure of the company, said IOC

• The board of directors of IOC had approved a plan to raise Rs 20,000 crore in FY21 via private placement of bonds and debentures in one or more tranches

New Delhi: Indian Oil Corporation Ltd (IOC) said on Monday that it has raised Rs 1,290.20 crore in debt to refinance existing borrowings and meet business expenses. In a regulatory filing to the stock exchanges, Indian Oil said that it has issued "5.60 percent unsecured, listed, rated, taxable, redeemable, non-convertible debentures of Rs 10 lakh each aggregating to Rs 1,290.20 crore on private placement basis." 

Indian Oil to use proceeds for refinancing existing borrowing, refunding capex

"The funds raised through this issue will be utilised for, inter alia, refinancing of existing borrowing and/or funding of capital expenditure of the company, including recoupment of expenditure already incurred and/or for any other purpose in the ordinary course of business," the company said in the regulatory filing.

Indian Oil is slated to announce its third quarter earnings on January 29. 

The backdrop

In October 2020, the state-run oil marketing company had told the exchanges that it had issued 20,000 unsecured, rated, taxable, redeemable, non-convertible debentures (Series — XV) of Rs 10,00,000 each aggregating to Rs 2,000cr on private placement basis on January 12, 2020 to meet its capex requirements.

ALSO READ: IOC submits EoI for developing 2.5 MTPA common carrier ATF pipeline for Jewar airport

Earlier, Indian Oil Corporation had issued 16250, 5.40 percent Unsecured, Listed, Rated, Taxable, Redeemable, Non-convertible Debentures (Series – XVIII) of Rs 10,00,000 each aggregating to Rs 1,625 crore on Private Placement basis on August 3, 2020. 

The board of directors of Indian Oil Corporation had approved a plan in October 2020 to raise Rs 20,000 crore in FY21 via private placement of bonds and debentures in one or more tranches. The fund raising is part of the overall limit of Rs 165,000 crore approved by shareholders at its previous annual general meeting, the company had said in a statement. The funds will be used to meet the expansion projects that the company has undertaken, IOC had said.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)