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Bharat Petroleum Corp Ltd (BPCL) on Friday said it has raised $500 million through a maiden overseas bond issue, to fund its capital expenditure.
The 10—year notes will bear a fixed interest of 4.625 per cent per annum, with interest payable semi—annually, the company said in a statement.
“The proceeds of the issuance will be used to fund capital expenditures for BPCL’s ongoing and future domestic projects,” it said.
BPCL said the issue was oversubscribed by almost 15 times.
Also, the benchmark issuance priced at the lowest spread vis—a—vis US Treasury amongst all 10—year bond issuances out of India in 2012, it said adding the transaction was priced at a spread of 2.90 per cent per annum over the 10—year US Treasury note.
BPCL Chairman and Managing Director R K Singh said, “The successful pricing of BPCL’s debut transaction is a remarkable testament of India’s strong macroeconomic fundamentals and BPCL’s credit strengths.”
The issue was almost 15 times over—subscribed, with an order book totalling $7.5 billion from 325 high—quality fixed—income investors.
In terms of geographic distribution, the notes were distributed 73 per cent to Asia and 27 per cent to Europe.
By investor type, the notes were distributed 62 per cent to fund managers, 14 per cent to private banks, 10 per cent to banks, and 12 per cent to insurance companies and corporates.
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