Indian Oil Corporation on July 29 said that it has issued $500 million worth bonds for a tenor of 10 years. This is the public sector firmÂ’s fourth international bond issue in the past three-and-a-half years. Last month, the Federal Open Market Committee indicated that US Fed would moderate the asset purchase based on improvement in the US economy. These indications were not taken favourably and markets went into sell off mode.
Considering the market conditions, IOC realigned its strategy of bond issuance and postponed its investor meetings and pricing from first week of July to second and third week of July so that markets could cool off and investorsÂ’ appetite for investment could resurface as they needed capital deployment after sell off, IOC said in a statement. The order book for the bond issue was about $3.5 billion from more than 400 investors.
z,p.The bond is subscribed by fund managers (64 per cent), banks (17 per cent), insurance and sovereign wealth funds (11 per cent) and private banks (8 per cent). In terms of geography, 73 per cent orders came from Asia, while Europe and West Asia and the US Offshore contributed 25 per cent and 2 per cent, respectively.z,p.
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