 Mumbai: Indian Oil Corporation (IOC) has sold oil bonds worth Rs1,450 crore in the secondary market. The sale of bonds of six years and nine years maturities was concluded on September 26, the company said in a press release. The bond issue had an issue size of Rs250 crore, with a green-shoe option, and generated a very good response, IOC said in the release. The bond issue, IOC's largest one-time liquidation so far, was made through the book-building route. A K Capital Services Ltd, Allianz Securities Ltd, Centrum Capital Ltd, ICICI Securities Ltd and UTI Bank Ltd were arrangers to the issue. IOC had issued Rs860 crore worth of bonds of three-year and nine-year maturities in April 2006. It had sold another Rs835 crore worth of 3-year bonds in June 2006. IOC also sold Rs1,225 crore worth of bonds of various maturities earlier this month. The government had, in March this year, issued the bonds to IOC to cover for the under-realisation on sale of domestic LPG and kerosene. The government had in March this year issued the bonds to IOC to cover for the under-realisation on sale of domestic LPG and kerosene. IOC will be receiving Rs7,000-crore worth oil bonds from the government by month-end, which is expected to provide a significant shot in the arm for the oil major. The oil bonds are issued to bridge the oil pool deficit which is aimed at helping the oil companies tide over the liquidity problems. The oil pool account will first be given funds equivalent to its dues to the oil companies; these companies will then be required to reinvest the money in government bonds. Last year, the oil companies were issued bonds worth Rs11,500 crore (Rs115 billion) with maturity of three, six and nine years and respective coupon rates of 7.33 per cent, 7.47 per cent and 7.61 per cent.
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