IOC sells oil bonds worth Rs1,450 crore

27 September 2006

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.