<p> Indian Oil Corporation (IOC), the nation's top oil firm, raised Rs 2,500 crore in debt through non-convertible debentures (NCD) at an interest rate lower than government bonds, its director (finance) Sandeep Gupta said on Friday.</p>.<p>"Today, Indian Oil fetched a competitive price of a 5-year unsecured NCD issue at an annual fixed coupon of 7.14 per cent," he told<em> PTI</em>.</p>.<p>This coupon rate is lower than the prevailing annualised yield of benchmark G-Sec for similar maturity.</p>.<p><strong>Also Read — <a href="https://www.deccanherald.com/business/business-news/oil-prices-rise-firms-hope-opec-will-talk-up-output-cuts-to-stem-sinking-prices-1141485.html" target="_blank">Oil prices rise, firms hope OPEC+ will talk up output cuts to stem sinking prices</a></strong></p>.<p>The prevailing annualised yield of 5-year G-Sc is at 7.16 per cent.</p>.<p>The NCDs, which will be used for general corporate purposes, including capital expenditure, were rated AAA by Crisil and Icra.</p>.<p>"Pricing of the NCS was undertaken over online bidding platform of NSE Ltd with a base size of Rs 1,000 crore and greenshoe of Rs 1,500 crore, aggregating to Rs 2,500 crore," he said.</p>.<p>The issue got an overwhelming response and was oversubscribed by more than 8 times of the base issue size by investors, encompassing retirement funds and banks.</p>.<p>The bonds will be allotted to investors on September 6, he added.</p>.<p>IOC had previously in February raised Rs 1,500 crore through a bonds issue at a coupon rate of 6.14 per cent. That was lower than similar maturing government bond trading at an annualised yield of 6.29 per cent.</p>.<p>That issue marked the return of the company to the onshore bond market after a gap of more than a year.</p>
<p> Indian Oil Corporation (IOC), the nation's top oil firm, raised Rs 2,500 crore in debt through non-convertible debentures (NCD) at an interest rate lower than government bonds, its director (finance) Sandeep Gupta said on Friday.</p>.<p>"Today, Indian Oil fetched a competitive price of a 5-year unsecured NCD issue at an annual fixed coupon of 7.14 per cent," he told<em> PTI</em>.</p>.<p>This coupon rate is lower than the prevailing annualised yield of benchmark G-Sec for similar maturity.</p>.<p><strong>Also Read — <a href="https://www.deccanherald.com/business/business-news/oil-prices-rise-firms-hope-opec-will-talk-up-output-cuts-to-stem-sinking-prices-1141485.html" target="_blank">Oil prices rise, firms hope OPEC+ will talk up output cuts to stem sinking prices</a></strong></p>.<p>The prevailing annualised yield of 5-year G-Sc is at 7.16 per cent.</p>.<p>The NCDs, which will be used for general corporate purposes, including capital expenditure, were rated AAA by Crisil and Icra.</p>.<p>"Pricing of the NCS was undertaken over online bidding platform of NSE Ltd with a base size of Rs 1,000 crore and greenshoe of Rs 1,500 crore, aggregating to Rs 2,500 crore," he said.</p>.<p>The issue got an overwhelming response and was oversubscribed by more than 8 times of the base issue size by investors, encompassing retirement funds and banks.</p>.<p>The bonds will be allotted to investors on September 6, he added.</p>.<p>IOC had previously in February raised Rs 1,500 crore through a bonds issue at a coupon rate of 6.14 per cent. That was lower than similar maturing government bond trading at an annualised yield of 6.29 per cent.</p>.<p>That issue marked the return of the company to the onshore bond market after a gap of more than a year.</p>