The Hindu Business Line : Indian Oil liquidates Rs 985-cr oil bonds

Indian Oil Corporation Ltd (IndianOil) has liquidated Rs 985 crore worth of oil bonds maturing in 2015 in the secondary market trade on Thursday through the book-building route.

According to a statement issued here the company said that the issue size was Rs 250 crore with a green shoe option and generated a good response. The arrangers to the issue were A.K. Capital Services Ltd, Allianz Securities Ltd, Centrum Capital Ltd, ICICI Securities Ltd and UTI Bank Ltd. During the current fiscal, IndianOil has liquidated oil bonds worth Rs 5,000 crore of various maturities in the secondary market sale including the current sale, the statement said.

The Government had issued oil bonds worth Rs 6,571 crore to IndianOil in March 2006 in lieu of the under-recoveries suffered on the sale of LPG for domestic use and kerosene for public distribution system. With the liquidation of these bonds, IndianOil has successfully disposed of the entire quantum of oil bonds, except oil bonds of about Rs 1,500 crore that are pledged with the Clearing Corporation of India Ltd (CCIL) for raising short-term funds, the statement said.

In addition, bonds worth Rs 2,321 crore received by IndianOil in September 2005 against settlement of pool dues are also pledged with CCIL, it added.

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