Financial Daily from THE HINDU group of publications
Wednesday, Sep 07, 2005
Financial Daily from THE HINDU group of publications Wednesday, Sep 07, 2005 |
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Corporate
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Corporate Bonds IOC to raise Rs 1,000 cr from bond market Our Bureau
New Delhi , Sept. 6 INDIAN Oil Corporation Ltd (IOC) is set to raise Rs 1,000 crore from the Indian bond market with a proviso of `Green Shoe' Option. According to a company release, this borrowing is to tide over the current financial situation. The company statement said IOC's book building issue of secured redeemable non-convertible bonds is to remain open for subscription on private placement basis from September 6 to 9. The bonds are rated `LAAA' by ICRA. These bonds offer twin options to the investors - one with a maturity period of five years with a `put & call' option at the end of each year and with floating interest rate to be reset semi-annually, while the other option for investors is to apply in a 10-year maturity paper with a fixed coupon rate, the company said. The indicative interest rate band given under the first option is 0-15 basis points over one-year gilt yield, and 7.30 per cent to 7.60 per cent under the second option. It had raised Rs 1,000 crore in May from the domestic bond market in less than two working days through a similar issue of secured redeemable non-convertible bonds for meeting its long-term working capital requirements.
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