IOC to raise $250 m from world market for capex

New Delhi, Nov 22 | Updated: Nov 23 2005, 07:49am hrs
State-owned oil major Indian Oil Corporation on Tuesday said it plans to raise $250 million from the world market to meet its capital expenditure requirements, with a green shoe option of $50 million.

"IOC has mandated BNP Paribas, Caylon Bank, Citigroup, ING bank NV, Mizuho Corporation and Sumitomo Mitsui to arrange the syndicated term loan facility. The term loan facility was launched on 21 Nov and will be completed by mid-Dec," IOC's director (finance) SV Narasimhan said.

Previously IOC had signed loan agreements in August for raising foreign currency loan of $ 670 million, including $ 200 million for refinancing the existing syndicated term loan facility for oil imports, IOC said in a press release.

The PSU had also raised Rs 1225 crore in sept 2005 and Rs 1000 crore in may from the domestic market via issue of secured redeemable non-convertible bonds, it said.

In 2004-05, IOC's capital expenditure which stood at Rs 6929 crore was 79% more than that of the previous year.

Indian Oil plans to attain revenues of $ 60 billion by 2011-12 from the current $ 35 billion through cordinated strategic plans including investments amounting to Rs 24,400 crore during 2002-07,mainly in integration and diversification projects, refinery expansion as well as product quality upgradation and retail operations.