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Our Bureau

New Delhi , Nov. 28

The Finance Ministry on Tuesday issued special bonds worth Rs 5,000 crore to oil marketing companies to help offset the losses incurred by them due to sale of oil products below their cost prices.

While Indian Oil Corporation (IOC), including IBP, have been issued bonds worth Rs 2,838 crore, Bharat Petroleum Corporation (BPCL) has been issued bonds worth Rs 1,135 crore and Hindustan Petroleum Corporation Ltd (HPCL) has got bonds for Rs 1,027 crore.

The Finance Ministry had in October this year issued the first tranche of oil bonds for Rs 5,000 crore. The oil bonds issued on Tuesday carry a coupon rate of 7.75 per cent per annum and have tenure of 15 years.

The investment in the bonds will not be considered as an eligible investment by bank and insurance companies for their statutory requirements. The special bonds will also be transferable and eligible for market ready forward transactions (Repo). The bonds, however, will not be an eligible underlying security for ready forward transactions (Repo/Reverse repo) with the Reserve Bank of India.

More Stories on : Petroleum | Corporate Bonds

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