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Friday, January 20, 2017

BPCL Raises 600 Million Dollars via Foreign Bond Offering

BPCL Public sector oil marketing major BPCL - Bharat Petroleum Corp on Wednesday raised 600 million dollars (about Rs 4,100 cr) via a foreign bond offering that saw strong investor interest. The company, via its wholly-owned Singapore ancillary, raised the money for a decade at an interest rate of 4.375 per cent, which was at 2 percentage points above the 10-year US treasury rate, sources stated. The bonds were rated ‘BBB-’ by Fitch and ‘BAA3’ by Moody's.
The total demand for BPCL's bonds were at 1.7 billion dollars from about 160 global investors. Of these, 75 per cent of the investors were from Asia and 22 per cent from Europe. This was the first foreign bond offering by an Indian corporate in the year 2017. Also the rate of interest was the lowest in the last eleven years when measured in terms of spread over 10-year US government bills.
The funds raised shall be used by BPCL to repay high-cost loans it had taken to buy assets in Russia, jointly with Indian Oil and Oil India. A Citibank arm acted as the joint global coordinator for the raising of funds.
At 14:42, BPCL share price was trading 1.58 per cent lower at Rs 663.25 on the National Stock Exchange (NSE) today. The stock opened at Rs 672 from a previous closing of Rs 673.90. The day’s high stood at Rs 676 while the day’s low read at Rs 662.95. So far, over 10 lac shares changed hands on the NSE counter having a traded value of Rs 6765.35 lac. The stock touched its 52 week high of Rs 687.95 on 24th October, 2016. On the other hand, the scrip made its 52 week low of Rs 365.58 on 23rd February, 2016.
For further details on the stock, please visit BPCL share price history.

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