IOC raises Rs 2,500 crore in debt through NCDs
5th Sep 2022

Indian Oil Corporation (IOC) has raised Rs 2,500 crore in debt through non-convertible debentures (NCD) at an interest rate lower than government bonds. The company fetched a competitive price of a 5-year unsecured NCD issue at an annual fixed coupon of 7.14%. This coupon rate is lower than the prevailing annualised yield of benchmark G-Sec for similar maturity.

The NCDs, which will be used for general corporate purposes, including capital expenditure, were rated AAA by Crisil and Icra. The company had previously in February raised Rs 1,500 crore through a bonds issue at a coupon rate of 6.14%. That was lower than similar maturing government bond trading at an annualised yield of 6.29%.

IOC is the largest enterprise in the country and the foremost ranked Fortune Global 500 Company in India and has presence in the complete hydrocarbon value chain from downstream refining & marketing, pipeline transportation, Petrochemicals, E&P and Gas Marketing.