IndianOil liquidates oil bonds

Hindustan Times, New Delhi
Indian Oil Corporation (IOC) has successfully liquidated Rs 806 crore worth of oil bonds maturing in 2021 and 2023 in the secondary market trade. The sale was concluded on Thursday through book building route. "The issue generated a very good response despite the constant strain on liquidity currently in the money markets," a company release stated. The arrangers to the issue were Darashaw, IDBI Capital, RR Financials, ICICI Securities Ltd and UTI Bank Ltd.

The yields and short-term interest rates have elevated following a 50 basis points cash reserve ratio hike by the Reserve Bank of India. The Government of India had issued oil bonds worth Rs 7,168 crore maturing after 15 to 17 years to IndianOil in the current financial year in lieu of the under-recoveries suffered by the oil companies on the sale of liquefied petroleum gas and kerosene. IndianOil has liquidated oil bonds worth about Rs 6,000 crore of varying maturities (including the current sale) in the secondary market during the current fiscal.