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IOC raises foreign currency loan facilities of US$ 350 million

New Delhi, December 21, 2004

Indian Oil Corporation Limited (IOC) has signed loan agreements for raising foreign currency loan of US$ 350 million to meet its requirement of funds. Out of total loan facilities of US$ 350 million, an amount of US$ 200 million will be utilised by IndianOil to finance its capital expenditure requirements. The balance amount of US$ 150 million will be utilised to meet its oil import requirements.

The agreement for US$ 200 million syndicated term loan facility, arranged by Citigroup, Calyon Bank, HSBC, Standard Chartered Bank, Bank of Tokyo Mitsubishi, DBS Bank and Mizuho Corporate Asia (HK) Ltd. at highly competitive rates, was signed yesterday at Singapore by Mr. P. Sugavanam, Director (Finance), IndianOil and Mr. P.K. Goyal, Executive Director (Corporate Finance), IndianOil. The maturity of this loan is five years and the proceeds shall be utilised by IndianOil to finance its capital expenditure requirements.

The syndicated loan facility of US$ 150 million launched by IndianOil in November 2004 received over-whelming response from the investors and the loan facility was closed with an oversubscription. The greenshoe option was fully exercised by the company and the facility size was increased from US$ 150 million to US$ 200 million. The total number of participating financial institutions in the syndicated loan facility was 14, comprising various major American, European and Asian financial institutions.

IndianOil has also entered into a loan agreement with Calyon Bank, Hong Kong Branch and DBS Bank, Singapore for raising short-term oil import financing facility of US$ 100 million and US$ 50 million respectively. The proceeds from these loans will be utilised to finance the Corporation's oil import requirements.

IndianOil plans to import over 33 million metric tonnes of crude oil in the current fiscal.

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