The $500 million maiden overseas bond issue of Bharat Petroleum Corporation Ltd. (BPCL) has been oversubscribed 15 times, the company said.

The proceeds of the issue will be used to fund capital expenditure for the company’s ongoing and future domestic projects.

The transaction has been priced at a spread of 2.90 per cent per annum over the 10-year U.S. Treasury note. The notes will bear a fixed interest coupon of 4.625 per cent per annum, with interest payable semi-annually in arrears.

“The successful pricing of BPCL’s maiden transaction is a remarkable testament of India's strong macro-economic fundamentals and BPCL’s credit strengths. We are extremely delighted with the outcome,” said R K Singh, Chairman and Managing Director.

The transaction received an order book totalling $7.5 billion from 325 high quality fixed-income investors. This is the highest oversubscription for any U.S. dollar bond out of the country, BPCL said.

In terms of geographic distribution, the notes were distributed 73 per cent to Asia and 27 per cent to Europe.

Keywords: BPCL bond issue

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