Sarkaritel.com News and Features-Corporate News

IOC raises US$670 million loan

New Delhi: 25 August 2005

To meet its fund requirement, Indian Oil Corporation Limited (IOC) has signed agreements to raise US$ 670 million as foreign currency loan recently. Of this, US$ 200 million will be utilized to refinance existing syndicated term loans and the balance US$470 million will be to meet the crude oil import requirements of IndianOil. IndianOil's Director (Finance), Mr. S.V. Narasimhan recently signed a loan agreement at Hong Kong for US$ 200 million syndicated term loan facility, arranged by Citigroup, Calyon Bank, HSBC, ING Vysya and Standard Chartered Bank at competitive interest rates. The proceeds of this loan will be utilized by IndianOil to prepay lenders of existing syndicated term loans. 

This refinancing route is expected to effect substantial savings. Separate loan agreements for raising short-term loans for financing oil imports were also signed with ICICI Bank, Singapore (US$ 250 million), Mizuho Corporate Bank, Singapore (US$ 50 million), The Bank of Tokyo and Mitsubishi Ltd, Singapore (US$ 50 million) and The Bank of America, Taipei (US$ 120 million) during the visit of Mr. P.K. Goyal, IndianOil's Executive Director (Corporate Finance), to Singapore recently. It may be recalled that IndianOil raised Rs.1000 crore earlier this year from the Domestic Bond Market through issue of Secured Redeemable Non-Convertible Bonds for meeting long-term working capital requirements. IndianOil is India's largest commercial organisation with a sales turnover of Rs. 1507 billion and profits of Rs. 49 billion for the year 2004-05. It is the highest ranked Indian company in the Fortune 'Global 500' listing at the 170th position and is also the 18th largest petroleum company in the world. For the year 2005-06, IndianOil has estimated to import over 40 million tonnes of crude oil.

E-Mail : newseditor@sarkaritel.com