BPCL has raised $600 million by selling 10-year dollar bonds to investors in Asia and Europe.
BPCL’s Singapore arm BPRL International Singapore Pte Ltd raised the money at 200 basis points above the 10-year US treasury which came to around 4.375per cent. The bond was raised at a rate which is among the best in 10 years. This issue is also expected to open the door for more Indian companies to raise money.
Investors bid for $1.7 billion of the issue out of which the company retained $600 million. About three-fourth of the investors were from Asia while the remaining were from the Middle East and Europe. BPCL will use the money to refinance short-term loans taken by the company to buy two Russian oil fields.
Meanwhile, NTPC plans to sell foreign currency denominated bonds worth at least €500 million within the next two weeks. The state-owned utility will conduct road shows in Europe to popularise the issue.