BPCL bond issue oversubscribed 15 times

October 19, 2012 11:31 pm | Updated 11:31 pm IST - MUMBAI:

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.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.